Dr. Isabelle Roland discusses her research project, Forbearance Lending as a Crisis Management Tool: Evidence from Japan, which aims to quantify the halifax macroeconomic costs and benefits of forbearance lending in Japan. Forbearance is a practice whereby banks accommodate bad borrowers struggling to meet their obligations. It results in loan relationships being kept alive, which would otherwise be terminated in the absence of incentives to forbear. The phenomenon was pervasive during Japan’s “Lost Decade” but has resurged in the aftermath of the Great Financial Crisis (GFC).
Find out more about this tiger woods Keynes Fund betty broderick project:
