The Bank recently commissioned a survey asking people about their unsecured borrowing and whether it is a burden to them. This article summarises the main results. As of October, 34% of respondents had some form of unsecured debt, over and above that which they expected to pay off at the end of...

Legal rules play a powerful but understudied role in security design. This article presents two new theoretical results about the design of debt contracts. The results derive from the premise that firms must avoid legal insolvency when issuing new debt because insolvency at issuance would...

Recent increase in P2P lending prompted for development of models to separate good and bad clients to mitigate risks both for lenders and for the platforms. The rapidly increasing body of literature provides several comparisons between various models. Among the most frequently employed ones are...