Comments on

نویسندگان

  • M. Kim
  • E. Kristiansen
  • B. Vale
  • Henri Pagès
چکیده

other hand, have convex costs in quality and compete in a two-stage game, determining first quality and then lending rates. The main dimensions along which strategic interactions take place are the extent of diversification, as measured by size, the ability to screen and monitor, as measured by loan loss provisions, and the capacity to withstand adverse liquidity shocks, as measured by the capital ratio. A panel of Norwegian bank data is then used to check whether interest rates on credit lines are sensitive to the chosen bank quality variables. The paper finds that the ability to screen and monitor is the most important strategic variable. This is interpreted as evidence that some borrowers are willing to pay higher rates for a correct evaluation of future loan applications.

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تاریخ انتشار 2001