tailieunhanh - COLLATERAL, TYPE OF LENDER AND RELATIONSHIP BANKING AS DETERMINANTS OF CREDIT RISK

As regards collateral, the pledging of collateral increases the PD when compared with unsecured lending. Within secured loans, the PD of those that are 100% secured is lower than that of those secured to a value of over 50% but not to a full 100%, although the latter account for only a small percentage of the sample. Finally, loans guaranteed by a credit institution or the public sector have a lower likelihood of default, less even than in the case of unsecured loans. Note that this latter class of loan is subject to a double evaluation, . by the bank. | 2004 BANCO DE ESPANA Gabriel Jimenez Jesus Saurina COLLATERAL TYPE OF LENDER And . RELATIONSHIP BANKING AS DETERMINANTS OF CREDIT RISK Documento de Trabajo n 0414 COLLATERAL TYPE OF LENDER AND RELATIONSHIP BANKING AS DETERMINANTS OF CREDIT RISK The Working Paper Series seeks to disseminate original research in economics and finance. All papers have been anonymously refereed. By publishing these papers the Banco de Espana aims to contribute to economic analysis and in particular to knowledge of the Spanish economy and its international environment. The opinions and analyses in the Working Paper Series are the responsibility of the authors and therefore do not necessarily coincide with those of the Banco de Espana or the Eurosystem. The Banco de Espana disseminates its main reports and most of its publications via the INTERNET at the following website http Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. BANCO DE ESPANA Madrid 2004 ISSN 0213-2710 print ISSN 1579-8666 on line Depósito legal Imprenta del Banco de .