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1、外文资料Whycreditriskoccur?Andhowtodealwithit?Adverseselectioninloanmarketsoccursbecausebadcreditrisks(thosemostlikelytodefaultontheirloans)aretheoneswhousuallylineupforloans;inotherwords,thosewhoaremostlikelytoproduceanadverseoutcomearethemostlikelytobeselected.Borrowerswithve
2、ryriskyinvestmentprojectshavemuchtogainiftheirprojectsaresuccessful;andsotheyarethemosteagertoobtainloans.Clearly,however,theyaretheleastdesirableborrowersbecauseofthegreaterpossibilitythattheywillbeunabletopaybacktheirloans.Moralhazardexistsinloanmarkersbecauseborrowersmay
3、haveincentivestoengageinactivitiesthatareundesirablefromthelender’spointofview.Insuchsituations,itismorelikelythatthelenderwillbesubjectedtothehazardofdefault.Onceborrowershaveobtainedaloan,theyaremorelikelytoinvestinhigh-riskinvestmentprojects-projectsthatpayhighreturnstot
4、heborrowersifsuccessful.Thehighrisk,however,makesitlesslikelythattheywillbeabletopaytheloanback.Tobeprofitable,financialinstitutionsmustovercometheadverseselectionandmoralhazardproblemsthatmakeloandefaultsmorelikely.Theattemptsoffinancialinstitutionstosolvetheseproblemshelp
5、explainanumberofprinciplesformanagingcreditrisk:screeningandmonitoring,establishmentoflong-termcustomerrelationships,loancommitments,collateral,compensatingbalancerequirement,andcreditrationing.ScreeningandmonitoringAsymmetricinformationispresentinloanmarketsbecauselendersh
6、avelessinformationabouttheinvestmentopportunitiesandactivitiesofborrowersthanborrowersdo.Thissituationleadstotwoinformation-producingactivitiesbybanksandotherfinancialinstitutions,screeningandmonitoring.Indeed,WalterWriston,aformerheadofCiticorp,thelargestbankcorporationint
7、heUnitedStates,wasoftenquotedasstatingthatthebusinessofbankingistheproductionofinformation.Screening.Adverseselectioninloanmarketsrequiresthatlendersscreenoutthebadcreditrisksfromthegoodonessothatloansareprofitabletothem.Toaccomplisheffectivescreening,lendersmustcollectreli
8、ableinformationfromprospectiveborrowers.Effectivescreeningandinformationcollection