For these banks, the authors' tests reveal that banks' internal credit ratings indeed include valuable private information from monitoring, as theory suggests. Banks' private information increases with the size of loans.
View the Full Working PaperWorking Paper
Credit Ratings, Private Information, and Bank Monitoring Ability
June 2016
WP 16-14 - In this paper, the authors use credit rating data from two large Swedish banks to elicit evidence on banks' loan monitoring ability.
Share
Download