It is commonly believed that borrowers cannot be anonymous in unsecured credit relations because anonymity heavily … reduces the scope for punishment and therefore makes credit unfeasible except for very special circumstances. However, we … demonstrate that credit is generally feasible even if borrowers are anonymous. In particular, we construct equilibria where …

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 …

This paper studies loan conditions in a context where private banks can operate in two credit markets: a free … credit to firms that are ex ante more difficult to lock-in in the free-market-larger firms in more contested regions. The … paper highlights a novel channel whereby earmarked credit is used by private banks to extract more rents. Once a firm …