ABSTRACT This study investigates the relation between types of collateral offered in rural loans Brazil and access to credit, loan conditions default rates. We use a novel proprietary database granted by one largest private banks containing more than 110 thousand observations. Our results show that fiduciary lien, improves for opaque borrowers (i.e., those with shorter relationship bank). type ...

The contribution of this paper is in emphasizing endogenous credit rationing in the analysis of effects of bankruptcy rules on entrepeneurs’ decisions with respect to risktaking and ex ante skill-development. Unlike most of the literature, both the debt claim and the amount of debt financing is endogenous in our exercise. This allows us to determine the extent of credit rationing that banks use...