Haku

This paper suggests that the optimal contract in lending under asymmetric information is a fixed rate loan contract. It is shown that deposit banks have an advantage to provide maturity transformation with fixed rate ...

We study the effect of collateral eligibility of corporate loans on the pricing of these loans by banks in Finland. Specifically, we investigate whether loans that are pledgeable as collateral for central bank borrowing ...

This study examines the floating rate channel—a mechanism through which monetary policy affects firms’ investment and credit demand based on their exposure to variable rate loans. Using a granular loan-level dataset from ...