Credit Thought Leadership Blog

May 3, 2023

Liquidity vs. Solvency Issues for Households

April 12, 2023 in Blog

Identifying and Funding Climate-Friendly Investments

Community Development Financial Institutions (CDFIs) are in a unique position to help small businesses make climate-friendly investments. They can play a vital role in identifying and helping finance energy, water,…
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March 3, 2023 in Blog

Impact Borrowing from Community Development Financial Institutions (CDFIs)

This post focuses on the demand for loanable funds in low-income and underserved communities. Impact borrowers typically have a specific social or environmental goal in mind and seek funding from…
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February 14, 2023 in Blog

Household Credit and The Life-Cycle Income Hypothesis

Why and when do people need credit? Answers to these two questions can help us better understand household demand for loanable funds. Most spending on goods and services in the…
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February 6, 2023 in Blog

Avoid Falling Into the Trap that led to the Global Financial Crisis

The collapse of the U.S. housing market which led to the great recession of 2008-9 could have been averted with better technology. The financial disruption from a collapse in housing…
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February 2, 2023 in Blog

The Demand and Supply for Loanable Funds

Credit markets help align the demand and supply for loanable funds. They help match borrowers and lenders with different risk preferences and time horizons. Demand for loanable funds mainly comes…
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January 29, 2023 in Blog

Why Low Income Individuals Lack Access to Credit

Access to credit is a critical component of economic stability and growth. It allows individuals and businesses to purchase homes, start or expand businesses, and afford other important expenses. However,…
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January 8, 2023 in Blog

Principal-Agent Problems in Credit Markets

A “Principal-Agent” Problem arises whenever a Principal, such as a lender or creditor, and Agent, such as a borrower, have conflicting objectives. In typical credit transactions, the agent has a…
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