This paper develops a model of equilibrium in the market for loans. It focuses on the effects on equilibrium of (i …

Recent empirical work suggests a strong connection between the incentives money managers are offered and their risk … not only effort exertion but also risk taking behavior. The moral hazard problem with risk taking involves an incentive …-compatibility constraint on risk, which we characterize. We distinguish between one period and several periods. In the former case, under mild …

This paper analyses the impact of public disclosure of banks’ risk exposure on banks’ risk taking incentives and its … their loan portfolio, public disclosure reduces the probability of banking crises. When asset risk is driven largely by … between asset risk and the deposit rate demanded by informed depositors. …

This paper uses a data-set including time series data on macroeconomic variables, loans, deposits and interest rates … studies while we uncover new facts on disaggregated loans and deposits. During the crisis the cyclical behavior of short term … interest rates, loans and deposits remain stable but we identify unusual dynamics of longer term loans, deposits and longer …

instruments which, if properly managed, perform better than either loans or grants taken in isolation. The core of the intuition …

moving beyond entrepreneurial credit and offering consumer loans. But many practitioners and policymakers are skeptical about …. A South African lender relaxed its risk assessment criteria by randomly approving some marginal applications it normally … administrative data on loan repayment. We find that the marginal loans produced measurable benefits in the form of increased …

loans to Central Europe and reconstruction of the gold standard system was needed to initiate long-term capital flows. A … that while lenders discriminated among potential borrowers and demanded compensation for default risk, their efforts in …