threat of entry; andthere are parameter values for which the bank makes more profits with the threat of entry thanwithout. … market decisions in the face of the threat of entry, in a dynamic model.The main results of the paper are: there exists a … separating equilibrium with no limit pricing; thelow-cost incumbent repays more to the bank in the first period, due to the …

active in the "assembly line" process of modern financial intermediation, a system that has become known as shadow banking …. The complex bank holding companies of today are the best example of hybrid intermediaries, but I argue that financial … acquiring the capability to engage in financial intermediation. I document instances of the emergence and growth of such nonbank …

Informational intermediaries — intermediaries who process information (an opinion, a price, a rating, an index, or … laws governing financial transactions seek to regulate the information generated by such intermediaries with a view toward … disclosures in securities offerings, stock exchanges or other securities information processors compiling market quotations and …

observed interbank exposures. Our findings suggest a genuine intermediation process within the banking system, with … macroeconomic risk factor. Overall our findings lend support to a theory of banking that involves leverage stacks, i …This paper explores the economics of interbank lending and borrowing using bank-balance sheet data for Germany, the …

information about the bank's loans. To produce safe liquidity banks choose loans with high such costs. Capital markets cannot … produce substitutes for bank money because they involve information revelation. They produce risky liquidity. This trade …Banks produce short-term debt for transactions and storing value. The value of bank money must not vary over time so …

that information about the backing assets - loans - not be revealed, so that bank money does not fluctuate in value …Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires …, reducing the efficiency of trade. This need for opacity conflicts with the production of information about investment projects …

that information about the backing assets - loans - not be revealed, so that bank money does not fluctuate in value …Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires …, reducing the efficiency of trade. This need for opacity conflicts with the production of information about investment projects …