The links of both Swedish borrowers and Swedish banks with the global banking system are important but different in nature. While Swedish borrowers draw from a relatively large number of creditors, Swedish banks lend predominantly to Nordic and, to a smaller degree, Baltic borrowers. An important implication is that events triggering (large enough) credit losses in these key markets would come ...

nowadays, the significant increase in the banks' non- performing loans is one of the main disturbances for authorities because of its bad effects on the macroeconomic index in our country such as increasing credit risk, liquidity risk and finally bankruptcy risk. social gap in welfare programs, deviation in monetary policies, etc. are the other bad results of this phenomenon. meanwhile, du...

Consumer borrowing is a large and growing part of the American financial landscape, amounting to over $1.5 trillion in 2000, or 15 percent of GDP. This credit helps households improve the timing of consumption expenditure, allowing consumers to purchase goods and services when they are needed. Still, many households report being credit constrained, with requests for credit rejected or discourag...

We document that banking deregulation increases competition, increased competition leads banks to offer lower initial rate on adjustable-rate mortgages (ARMs) to attract borrowers, but they also shroud these contracts by designing them with back-loaded resetting rates. Shrouding helps banks to offset about 73% of their losses from price discount due to competition. Deregulation increases the pr...

Did the unification of commercial and investment banking heighten risk in financial markets due to moral hazard of borrowers? In a simple intertemporal model with moral hazard and uninsured risk, we argue that if financial contracts are properly written, the integration in financial markets could give rise to greater risk sharing arrangement and could eliminate the equity risk premium attribute...

Social lending is community-based lending. The “family and friends” loans community has been extended and formalized to create a marketplace of borrowers and lenders. In Internetbased Social Lending (IBSL), the company runs a website that connects potential lenders with potential borrowers. By removing the overheads and bulky infrastructure of the banking system, IBSL provides lenders a higher ...