Gersbach, Hans; Uhlig, Harald - 2006
alleviate moral-hazard problems by se-
curing a portion of a repayment in the case of non-investment. Finan-
cial markets …-selection and moral-hazard problem. We examine how
banks and financial markets compete in this credit market. The first type,
called … moral hazard problems. Standard banks, how-
ever, face competition from financial markets, whereas investment banks and …