This paper reviews peer-to-peer (P2P) lending, its development in the UK and other countries, and assesses the business and economic policy issues surrounding this new form of intermediation. P2P platform technology allows direct matching of borrowers’ and lenders’ diversification over a large number of borrowers without the loans having to be held on an intermediary balance sheet. P2P lending ...

How do differences in bank or lending institution type shape access to credit for small businesses poor and/or minority communities the United States? Banking systems are populated by lenders that differ qualitatively their organizational forms, business models and missions, connect—or fail connect—to borrowers local divergent ways. The authors analyze data on Paycheck Protection Program its ov...

The paper gives an overview of current conceptual framework for the credit risk assessment dedicated to banks. The framework utilises the Merton model to estimate the default probabilities of companies that are supposed to be the main borrowers causing a formation of a greater credit risk in banks. By doing this, banks are able to reaffirm the ability of their borrowers in meeting loan commitme...

The paper investigates to what extent the convergence of banks over risk-adjusted capital standards set by the new Basel Capital Accord may affect the way in which they screen innovative firms. It also gives an overview of the existing forms of credit support to R&D activities. The study is built upon a survey conducted in January and February 2006 on 12 main Italian banking groups. The survey ...

The article reveals the essence of banking scoring and importance compiling high-quality models for assessing risks when working with borrowers. complexity processing surface information about borrower need clarification additional questions are indicated. history causes appearance modeling in middle 20th century described. main criteria used to create algorithms financial reliability listed. c...

Human behavior in banking and financial systems is in part made up of a complex mix of political, social and cultural factors. These factors are reflected in expert opinion based political risk scores. Market inefficiency is largely a result of anomalies in human behavior causing information asymmetries. A basic systemic market model is re-specified into a model for international banking system...