2 Introduction 3 1. The Bank Lending Channel 4 1.1 Interest Rate and Credit Channels: a Brief Overview of Theoretical Concepts 4 1.2 Determinants of the Bank Lending Channel 6 2. A Short Description of Latvia's Banking Sector 7 2.1 Importance of the Banking Sector for Latvia's Financial System 7 2.2 Structure of Latvia's Banking Sector 8 3. Discovering Asymmetries in Bank Lending Behaviour 12 3...

This paper uses 2005 Home Mortgage Disclosure Act data aggregated by census tract to measure the relationship between census tract-level college completion rates and the rates at which first lien refinance mortgage applicants submit incomplete loan applications, withdraw loan applications before they are reviewed, and reject lender approved loan offers. This paper also explores the relationship...

Chinese authorities have initiated disposal methods ranging from loans sales to debtfor-equity swaps to resolve the country’s Non-Performing Loans (NPL). NPL securitization, a form of structured finance, tops the list of innovative financing techniques to resolve the remaining USD$73.1 billion of the original USD$170 billion removed from the banking system by Asset Management Companies (AMC), w...

to such loans? This question is important to monetary policy. Like other central banks, normally the Fed makes loans to banks through its discount window. This credit has long been thought to be an important tool for responding to financial strain. But if banks are reluctant to borrow from the Fed because of a stigma attached to such loans, then the Fed’s ability to provide liquidity as a lende...

We analyze lending contracts when social sanctions are used to enforce repayments and borrowers di¤er in their unobserved sanctioning abilities. Symmetric group loans are preferred to cosigned loans when borrowers are relatively equal, and cosigned loans are preferred when borrowers are unequal. This explains why microlenders that target the poor (e.g., the Grameen Bank) use symmetric group loa...

This paper studies loan collateral and relationship banking. A firm has different loans (e.g. short-term and long-term loans) and alternative collateral assets. How does it allocate the collateral assets between the loans? It optimally secures a long-term loan with collateral that incurs high information costs initially and has a strong learning effect during the loan period (e.g. accounts rece...

collateralized mortgage obligations are derivatives securities based on mortgage loans which issued in different maturities, interest rates and credit ratings. in iran attention to decision authorities for the first time allowed iran melli bank and maskan bank to issue this kind of securities. one of the main questions in issuing this kind of securities is maximizing the issuer profit by choosi...

Abstract Consumer protection shifts risks from consumers to businesses. This raises marginal costs and equilibrium prices. It is justified when markets are not strong enough allocate contractual or accident efficiently, especially in cases of severe asymmetric information between suppliers consumers. can then increase the consumer’s expected welfare a contract. We test these considerations theo...

Copyright (1994) This paper places a new interpretation on the traditional evolutionary account of money and banking institutions. This allows the development of a new conceptual framework for a monetary model called the Loans Standard. The Loans Standard has an institutional structure that minimizes the transaction costs of using exchange credit (i.e. money). Developments within the existing s...