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Community development financial institutions (CDFIs) are designed to improve economic conditions for low-income individuals and communities by providing a range of financial products and services that often are not available from mainstream lenders and financiers. ; Part I of this paper reviews...
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-premium deposit insurance increase the degree to which bank participation in relending to problem debtors falls below its globally … optimal level. This provides a channel for fixed-premium deposit insurance to inhibit credit extension in bad states …
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