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Using administrative data on deposits and loans of every Norwegian with every Norwegian bank, we show that an existing deposit account makes a household more likely to hold deposits at the same bank later despite better alternatives and more likely to borrow there. Consistent with this, banks...
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We evaluate if lenders price or securitize mortgages to mitigate credit risk. Exploiting exogenous variation in regional credit risk created by differences in foreclosure law along US state borders, we find that financial institutions respond to the law in heterogeneous ways. In the agency...
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jeopardized. This raises concerns for lending institutions that have provided credit to these companies, potentially leading to … stricter lending conditions for borrowers. This paper analyzes how these risks spread from the real economy to the syndicated … borrower. These findings suggest that creditors are increasingly incorporating nature-related information into their financing …
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The traditional loans pricing methods are usually based on risk measures of individual loan's characteristics without considering the correlation between the defaults of different loans and the contribution of individual loans to the entire loan portfolio. In this study, using account-level...
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assumption throughout the article is that no market information on a borrower's credit quality like bond or CDS (Credit Default … level of interest rates and borrower default probabilities shows that a bank should only originate a loan, when the interest … rate a borrower is willing to accept is inside the profitability range for this client. This range depends on a bank …
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