Li, Qiang; Zeng, Yong; Liu, Bin - In: The Quarterly Review of Economics and Finance 54 (2014) 2, pp. 216-229
In a credit market, a low-cost foreign entrant is likely less informed than a domestic bank with information endowments. We present a steady-state model in an infinite-period framework, and analyze how the informational asymmetry affects the lending equilibrium and the foreign banks’ entry...