We study specialized lending in a credit market competition model with private information. Two banks, equipped with … similar data processing systems, possess "general" signals regarding the borrower's quality. However, the specialized bank … based on its specialized signal conditional on making a loan. This private-information-based pricing helps deliver the …

widespread stress, with adverse affects on bank intermediation thereafter. We discuss the bank capital and the bank funding … conclude by discussing the increasing extension of bank credit lines to non-bank financial intermediaries, as well as the role …

fundamentals. We show that hardening soft information levels the playing field for the non-specialized bank by reducing its winner …We develop a credit market competition model that distinguishes between the information span (breadth) and signal … precision (quality), capturing the emerging trend in fintech/non-bank lending where traditionally subjective ("soft …

since the mid-1930s when banks invented the term loan. Concurrently, bank innovation first involved the invention of credit … analysis and covenant design. Later, bank innovation included the advent of loan sales, increased loan syndications, the … calibrate a model of bank innovation to determine the quantitative contribution of bank innovation to economic growth …

bank funding costs. We show that credit supply is dampened by the associated debt-overhang cost to bank shareholders. Until … offset if drawdowns are expected to be left on deposit at the same bank, which happened at some of the largest banks during …

ultimately bears the information cost, reducing her financing capacity. A pecking order emerges. Debt generates a greater … defaults and, therefore, have weaker incentives to acquire information. Probabilistic asset ownership can be further diluted by … introducing intermediaries between the borrower and the creditor, leading to a new theory of financial intermediation and credit …

This study analyzes information production and trading behavior of banks with lending relationships. We combine trade … trading pattern is more pronounced in situations when banks are likely to possess private information about their borrowers …

that information about the backing assets - loans - not be revealed, so that bank money does not fluctuate in value …Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires …, reducing the efficiency of trade. This need for opacity conflicts with the production of information about investment projects …

This paper develops a general equilibrium model to examine the role of information technology when intermediaries … facilitate the origination and distribution of assets given information asymmetry. Information technology measures the …

capital and the level of investment. We argue that bank uniqueness is related to how the design of bank loan contracts allows … banks to affect borrowers' choice of project risk. Unlike corporate bonds, bank loans are typically secured senior debt … which contain embedded options allowing the bank to "call" the loan. The option allows the bank tv control borrowers' risk …