The rise of algorithmic decision-making has spawned much research on fair machine learning (ML). Financial institutions use ML for building risk scorecards that support a range credit-related decisions. Yet, the literature in credit scoring is scarce. paper makes three contributions. First, we revisit statistical fairness criteria and examine their adequacy scoring. Second, catalog options inco...

Regulatory changes and technological advances have profoundly affected the competitive landscape of credit markets. In this paper, we investigate the role of information acquisition as a strategic tool for intermediaries to respond to competitive pressures. We specify a model in which the severity of asymmetric information between banks and borrowers varies with distance. Banks acquire borrower...

This paper examines the relationship between UK firms’ choices over bank-based and market-based finance under different monetary conditions. The evolving financial environment facing the corporate sector provides many nonbank external finance options available as an alternative to bank finance. The paper shows that firms distributed according to their type (asset size, rating etc) have differen...

The publication of the ‘Fed Boston Study’ drew considerable attention to the long-standing issue of discrimination of minorities in mortgage lending. Federal regulators have since stepped up their efforts to enforce greater compliance of banks with various fair-lending laws. Stengel & Glennon (1999), in their influential paper, offered the industry a statistical methodology that individual bank...

I study the role of credit ratings in crises by introducing a financial market in a coordination game with borrowers that must rollover their debts. The asset price aggregates dispersed private information acting as a public noisy signal. Credit rating agencies use this price to set their ratings. Moreover, agencies know that credit ratings influence lending decisions, thus affecting the credit...

We investigate how personal bankruptcy law affects small firms’ access to credit. When a firm is unincorporated, its debts are personal liabilities of the firm’s owner, so that lending to the firm is legally equivalent to lending to its owner. If the firm fails, the owner has an incentive to file for personal bankruptcy, since the firm’s debts will be discharged. The higher the exemption level,...

This paper examines the e↵ects of intra-financial lending – claims between financial institutions – on aggregate investment and credit to the non-financial sector in the United States. Building on Montecino, Epstein, and Levina (2014) we document a large growth in intra-financial assets beginning in the early 1980s. Using a vector autoregression model, we find that intra-financial lending is ne...

The credit platform of P2P network is a new type of lending model which based on Internet technology. It is the inevitable product in the rapid development of science, technology and social economy. It makes the current credit model more diversity and comprehensive, which plays a pivotal role in China's economic development. This paper introduces the mode and characteristics of P2P network lend...

The face of agricultural lending has changed dramatically over the last several decades from both a demand and supply perspective. Farm numbers are down, but size is up. The distribution of farms is increasingly bimodal; 2% of farms today produce over one half of total sales. Largesized operations are capital intensive, utilizing the latest technologies embodied in variable and fixed inputs to ...

Powerful politicians can interfere with the enforcement of regulations. As such, expected political interference affect constituents’ behavior. Using rotations Senate committee chairs to identify variation in power and regulatory relief, we study powerful politicians’ effect on consumer lending communities protected by fair-lending We find a 7.5% reduction credit access minority neighborhoods s...