Rendering of the loans is one of the main activities of commercial banks, giving the largest income, but at the same … time raising the highest risk. Trying to avoid the risk of non-repayment of the loans, to insure the redemption of the loan … in time and to gain a profit as more as possible commercial banks should give the loans only to the reliable clients …

asymmetry environment. Loans of private firms, loans without an available credit rating, loans syndicated by less reputable … arrangers, distressed loans, and loans of loss firms are traded at significantly higher bid-ask spreads. Second, timely … incorporation of economic losses into borrowers’ financial statements reduces the bid-ask spread at which their loans are traded …