Is Economic Uncertainty a Risk Factor in Bank Loan Pricing Decisions? International Evidence
Uncertainty in economic environment leads economic agents to act cautiously. In this paper, we postulate that such uncertainty leads banks to charge higher interest rate on loans. Measuring aggregate country-level economic uncertainty with the World Uncertainty Index (WUI) and using a bank-level dat...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-04-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/9/5/81 |