Banking (Conservatively) with Optimists

Michael Manove and A.J. Padilla

Working Papers from Centro de Estudios Monetarios Y Financieros-

Abstract: In the course of ordinary business, commercial banks frequently encounter entrepreneurs seeking loans for the purpose of financing new or continuing projects. These entrepreneurs are frequently unrealistic, their perception having been biased by wishful thinking. Bankers are left with a difficult screening problem: separating realists from optimists who may be clever and knowledgeable and completely sincere in their optimistic beliefs.

Keywords: BANKING; CAPITAL; LOANS (search for similar items in EconPapers)
JEL-codes: G21 M21 (search for similar items in EconPapers)
Pages: 34 pages
Date: 1997
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Banking (Conservatively) with Optimists (1999)
Working Paper: Banking (Conservatively) With Optimists (1998)
Working Paper: Banking (conservatively) with Optimists (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:cemfdt:9718

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