Florian Exler - Latest - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-19T05:42:01+00:00Consumer Credit with Over-optimistic Borrowers
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-57/
When lenders cannot directly identify behavioural and rational borrowers, they use type scoring to track the likelihood of a borrower’s type. This leads to the partial pooling of borrowers, which results in rational borrowers subsidizing borrowing costs for behavioural borrowers. This, in turn, reduces the effectiveness of regulatory policies that target mistakes by behavioural borrowers.2020-12-30T08:51:56+00:00enConsumer Credit with Over-optimistic Borrowers2020-12-30Credit and credit aggregatesCredit risk managementFinancial system regulation and policiesStaff Analytical Note 2020-57https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-57.pdfStaff Analytical Note 2020-57Florian ExlerIgor LivshitsJames (Jim) C. MacGeeMichèle TertiltDecember 2020EE2E21E4E49GG1G18KK3K35