The adaptive approach for collateral adequacy within overconfidence of the lender

We reveal a new adaptive approach for collateral adequacy in bank risk management. This study presents the empirical integration of conventional banking and behavioral finance - the perspective and inspiring field of finance - in the Russian science. We proved the evidence of loan-to-value ratio (LTV) application to depict one of credit risk' metrics for bank corporate loan, using binary models and linear regression, under the case of Russian regional banks.