What is the rationale for banks getting collateral? Pls. explain how it helps the banks in the lending process in general. How does that help to the lenders to reduce the moral hazard problem due to information asymmetry? Pls. consider how would it affect the lending decisions if a moral hazard issue would have existed. How would that affect the depositors in general? How would that affect the well-being of financial markets? How important the banks are in solving this issue? Pls. discuss.