We study the effects on credit allocation and bank stability of introducing a leverage ratio requirement (LRR) on top …

resources across firms' different business lines. Credit risk is lower when firms write contracts that oblige them to invest …

The recent switch from the incurred credit loss model to the expected credit loss model is an important change to bank … financial reporting systems around the world. The expected credit loss model requires banks to monitor their borrowers closely …

Corporate credit ratings have tightened gradually but substantially over two decades. We ex- amine whether syndicated …

traditional loan pricing model, this new proposed one, requiring lower loan interest rates from customers with higher credit … rating, while higher loan interest rates from customers with lower credit rating, could thus be able to provide higher risk …

banks' financial distortions, which in turn increase with banks' credit risk. Higher capital requirements dampen the current … supply of banks' credit, but mitigate banks' future financial distortions. Capital requirements should be raised in response … to both an expansion of banks' credit supply and an increase in the expected future credit risk of banks. They should be …

A note on the meaning of risk-neutral default probability and comments on methods for obtaining the associated credit …

) are used as instruments of business policy and (3) are used by banks as a means of credit monitoring. If a bank decides to …