This paper provides a novel rationale for the use of discretion in bank loan contracts. Discretion allows banks which produce information on borrowers to optimally adapt contract terms to "soft" or non-verifiable information in the course of lending. This facilitates investment eciency,and also allo...
3 Federal Home Loan Mortgage Corp US Freddie Mac 1970 2203 4 Agricultural Development Bank of China China ADBC 1994 1007 5 Caisse des Dépôts et Consignations France CDC 1816 683 6 Export-Import Bank of China China ChinaExim 1994 656 7 European Investment Bank – EIB 1958 623 8 Kreditanst...