Prosper, the largest online social lending marketplace with over a million members and $207 million in funded loans, uses an auction amongst lenders to finance each loan. In each auction, the borrower specifies D, the amount he wants to borrow, and a maximum acceptable interest rate R. Lenders specify the amounts ai they want to lend, and bid on the interest rate, bi, they’re willing to receive...

Background: There are several factors that lead to the growth or decline of the nonperforming loans, such as macroeconomic variables and bank specific variables, banks ownership structure, corruption and information sharing. Among them one of the main factors that affect the non-performing loans are the corruption. In developing countries corruption plays very important role in the growth of no...

Student Loans Repayment and Recovery: International Comparisons Student loans schemes are in operation in more than seventy countries around the world. Most loans schemes benefit from sizeable built-in government subsidies and, in addition, are subject to repayment default and administrative costs that are not passed on to student borrowers. We probe two issues in this paper, for 44 loans schem...

This paper examines the reporting of bank loans in the financial press during the 2004-2007 period. More specifically, it uses a unique hand-collected data set to examine the frequency and determinants of loan reporting. The motivation is double folded. First, virtually all publicly traded firms borrow from banks. However, despite their widespread use, the reporting of bank loan agreements in t...

We analyze the impact of a contract's length, callability, amortization and original discount by arbitrage methods. Among instruments that are callable without penalty, longer instruments command a higher interest rate because the borrower possesses the option of repaying relatively more slowly. However, the rate on longer self-amortizing loans cannot be substantially larger than for shorter on...

The permanent state of the financial crisis has predictably brought to forefront such traditional problem banking as loans. This research aims work out an econometric approach solution loans terms’ rescheduling. For this purpose, we, firstly, treated credit a bank’s investment project with cashflows’ chart including initial outflow (principal) and following inflows represented by loan payments....

This paper develops a life insurance liability valuation model that integrates the balance-sheet insurer loans with shadow banking entrusted in premature default risk environment. It is shown policyholder significantly benefits from loan activities less likely The protection increased accord high guaranteed interest rate, particularly when company has ample access to loans. also by participatio...

An encompassing model of a business loan contract with the bank is constructed to establish the roles and relative importance of asymmetry of information, market power, borrower (entrepreneurial) effort and quality in explaining contract features. Special cases of the model include symmetric versus asymmetric information regimes, competition versus monopoly power, adverse selection versus moral...