credit rationing

In other words, how many people were constrained by credit rationing?

Two main types of credit rationing can usually be distinguished.

To avoid this, credit rationing would have to extend to all institutions.

Higher agency cost and lower initial assets lead to more credit rationing.

Credit rationing is unlikely to apply to all financial institutions.

Credit rationing in the size of loans is also known as borrowing constraints.

Therefore, the investment level would also be lower, causing credit rationing in the size of loans.

Many important studies followed their example, some with competing results, and extended the issue of credit rationing to further domains.

In their study, they showed that a competitive loan market suffers from the credit rationing problem.

If credit rationing has been in force, then a relaxation of controls will increase borrowing and spending.

Hence, we see credit rationing as a result of imperfection in capital markets.

This would allow money supply to be reduced without raising interest rates or having to resort to credit rationing.

However, the problems of credit rationing can be serious:

The problem of credit rationing arises most if the creditor does not have anything to provide as collateral.

The Thatcher government was always very much opposed to the use of credit rationing, since it prevents free competition in financial markets.

Credit rationing provides a means of directly reducing aggregate demand without having to raise interest rates.

With these caveats, it is worthwhile to consider how reputation concerns can lead to credit rationing.

The researcher asks if the story of interest rate caps leading to credit rationing is borne out in reality?

However, if every bank charges a higher interest rate than the average rate in the spot market, then there would be credit rationing.

Also, implicit contracts have been playing an important role in explaining credit rationing under asymmetric information.

In the academic literature, redlining falls under the broader category of credit rationing.

Like layoffs in the labor market, there is credit rationing in the financial market.

Bring back credit rationing, leading to mortgage queues.

For example, in the presence of credit rationing, aggregate risk can cause bank failures and hinder capital accumulation.

There are three potential advantages of credit rationing: