In microcredit institutions, credit officers play a prominent role in loan granting decisions. Indeed, they collect field data, meet with the applicants, and provide personal recommendations to the credit committee that takes the final decisions (loan approval/denial, and loan size). This paper...

This paper develops a test for discrimination in lending combining denial rates and recovery rates. In contrast to the recent outcome-test methodology scrutinizing biases in the credit market with differential profits, our approach is applicable to (simple and intersectional) discrimination...

Our test procedure for discrimination in lending combines denial rates and recovery rates and is applicable to simple and intersectional discrimination regardless of the profit orientation of the lender. Using a European microcredit dataset, the tests reveal that the positive—and socially...

In order to derive closed-form expressions of the prices of credit derivatives, standard credit-risk models typically price the default intensities, but not the default events themselves. The default indicator is replaced by an appropriate prediction and the prediction error, that is the...

This article proposes an overview of the usefulness of the regime switching approach for building various kinds of bond pricing models and of the roles played by the regimes in these models. Both default-free and defaultable bonds are considered. The regimes can be used to capture stochastic...