credit risk is defined as a situation in which the liability itself and its interests are not paid back based on the terms determined in contract. in fact, it is considered as the most important risk each bank has to encounter, among the ones present in banking operations, which is actually because of bank's later life being dependent on it. therefore, carefully taken into account, the fac...

abstract the traditional or liberal theory of contract always had encounter serious critics. the authors of this article have criticized this theory- based on new theory of unger (a pioneer in the critical legal studies movement) - and also have analyzed the strengths and weaknesses of that. this theory consists of a principle and a counter principle that include freedom of contract against the...

information dissemination throughout the society is carried out by a phenomenon called news. this phenomenon is in relation to various social institutions as well as different aspects of people’s lives. in the present article, the writers believe that, firstly, the phenomenon of news, despite the operations carried out to disseminate and present it, has material value and that its economic valu...

The concession of rural credit in the Brazilian Amazon became conditional upon stricter legal and environmental requirements in 2008. This paper uses this policy change to investigate credit constraints in the region, and how the variation in credit impacts deforestation. Di!erences-indi!erences estimation based on a panel of municipalities shows that the policy change led to a reduction in rur...

China has experienced tremendous growth in consumer credit over the past years. One important question is how to preserve a healthy credit sector while at the same time stimulating further economic growth. Credit reporting systems are a crucial part of the vital development of consumer credit markets — they are highly sophisticated in the industrialized countries. However, currently there is no...

We propose a theory of unsecured consumer credit where: (i) borrowers have the legal option to default; (ii) defaulters are not exogenously excluded from future borrowing; (iii) there is free entry of lenders; and (iv) lenders cannot collude to punish defaulters. In our framework, limited credit or credit at higher interest rates following default arises from the lender’s optimal response to li...

We propose a theory of unsecured consumer credit where: (i) borrowers have the legal option to default; (ii) defaulters are not exogenously excluded from future borrowing; (iii) there is free entry of lenders; and (iv) lenders cannot collude to punish defaulters. In our framework, limited credit or credit at higher interest rates following default arises from the lender’s optimal response to li...

Letter of Credit is an international payment instrument whereby the issuing bank undertakes to pay the beneficiary, against presentation of certain stipulated documents, according to the conditions of the Letter of Credit. Discounting of LC for the short-term financing of the seller, due to the independent and irrevocable undertaking of the bank to make payment, is prevalent. Beneficiary gets t...