The study looked at why banks ask for collateral when giving loans to Spanish companies. They analyzed data from 1984 to 2002 and found that banks are more likely to ask for collateral from companies with bad credit. Small banks and savings banks also tend to ask for collateral more often. When the economy is not doing well, banks are more likely to ask for collateral. However, if a company has a long history with the bank, they are less likely to need collateral. Also, in areas where there are fewer options for loans, collateral is less common. Lastly, if the loan is small or if the economy's interest rates are high, banks are more likely to ask for full collateral instead of partial collateral.