Although loans are a profitable product for banks, they inherently contain an element of risk. The financial sector in terms the fact that loan transferred to economy is not paid due time and becomes problematic, firstly affecting bank made then other banks. On hand, it affects real reducing amount be increasing cost loan. In words, existence control non-performing very important activities bot...

We argue that more help does not necessarily lead to more gratitude. Rather, gratitude depends on how a given instance of help compares with the help that a person is used to receiving. Participants read vignettes detailing an event in which 11 different friends either lent them varying amounts of money or spent varying amounts of time providing help. The amount of gratitude elicited by a given...

Purpose – Banks are the major suppliers of external funds for companies in China. The purpose of this paper is to examine whether Chinese banks exercise effective monitoring over borrowers in two lending decisions, including loan interest rates and loan renewals. Design/methodology/approach – Using a sample of Chinese public industrial firms from 2000 to 2005, the authors perform multivariate r...

Background In consumer lending, portfolio managers typically have access to a scorecard used to forecast default probability for each applicant. Scorecards are built using historical data on loan accounts and their respective performance data. The inputs into the scorecard include financial, demographic and other personal information about each applicant. The output of the scorecard is a real-v...

A lthough fair lending laws mandate that all loan applicants receive equal treatment, all of the evidence reveals wide disparities in origi-nation outcomes between white and minority loan applicants. Some of these differences are attributable to income and wealth differences between minorities and whites. Rigorous statistical analysis, however, continues to find loan denial disparities between ...

This paper uses 2973 loan profile records of 2810 poor households who have taken these loans from different quasi-formal sources of which about 50 percent of the loan taken is supplied by the Ultra-poor oriented program designed by PKSF. The objective of this program was to create some income source for these Ultra-poor through credit support. But diversion of loan use from the proposed IGA to ...

Using data from two freshmen cohorts at a public research university (N = 3,730), this study examines the relationship between loan aid and second-year enrollment persistence. Applying a counterfactual analytical framework that relies on propensity score (PS) weighing and matching to address selection bias associated with treatment status, the study estimates that loan aid exerts a significant ...

We study the difference between loan sales and credit default swaps. A bank lends money to an entrepreneur to undertake a positive NPV project. After the loan has been made, the bank finds out if the project benefits from monitoring and if it should sell the loan to release regulatory capital. A bank can lay off credit risk by either selling the loan or by buying credit insurance through a cred...