Competition and Lending Standards with Multidimensional Private Information

Seokwoo Lee, W. Mann
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Abstract

We investigate how loan terms respond to competition between lenders when borrowers have multidimensional private information. In our model, competitive lenders screen borrowers using contracts that consist of an interest rate and a collateral requirement. Compared to a monopolistic lender, a competitive market offers uniformly lower collateral requirements, and a larger share of funded projects are negative-NPV. The competitive market may be more or less efficient than the monopolist, depending on the deadweight cost of collateral and the degree of selection externalities. In principle, efficiency could be greatly improved by an uninformed regulator who completely controls the interest rate schedule. However, simpler policies such as minimum collateral or higher interest rates do little to improve efficiency.
多维私有信息下的竞争与借贷标准
我们研究了当借款人拥有多维私人信息时,贷款条款如何响应贷款人之间的竞争。在我们的模型中,有竞争力的贷款人使用包含利率和抵押品要求的合同来筛选借款人。与垄断性贷款机构相比,竞争性市场提供的抵押品要求一致较低,更大比例的融资项目为负npv。竞争市场可能比垄断市场效率更高或更低,这取决于抵押品的无谓成本和选择外部性的程度。原则上,一个完全控制利率时间表的不知情的监管者可以大大提高效率。然而,更简单的政策,如最低抵押或更高的利率,对提高效率几乎没有帮助。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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