Central Banking

Bankruptcy does not exclude consumers from credit markets: Fed paper

federal-reserve

Consumers with a history of personal bankruptcy are not excluded from unsecured credit markets but face less favourable financing terms, a Federal Reserve paper, published in May, says.

The paper's authors, Song Han, Benjamin Keys and Geng Li, use a dataset on credit card mailings to explore the supply of unsecured credit to consumers with a high level of default risk such as those with a bankruptcy history.

They find that although bankruptcy filers do not face outright exclusion from credit

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: