Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires … that information about the backing assets - loans - not be revealed, so that bank money does not fluctuate in value …-insensitive assets. For the economy as a whole, firms endogenously separate into bank finance and capital market/stock market finance …

We study specialized lending in a credit market competition model with private information. Two banks, equipped with … similar data processing systems, possess "general" signals regarding the borrower's quality. However, the specialized bank …

Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank … imposed solvency constraints on banks. However, these constraints may not survive in systems competition, as systems … competition is likely to suffer from the same type of information asymmetry which induced the private market failure and which …

Using data from SEC filings, I show that the typical bank loan is renegotiated five times, or every nine months. The …

competition between traditional banks and challenger fintech entrants. We study lending market competition when sharing banks …

This paper provides a simple model showing that the extent of competition in credit markets is important in determining …

robustness to labor market competition both theoretically and experimentally. Consistent with our theoretical model, we observe … substantial ratchet effects in the absence of competition, which is nearly eliminated when competition is introduced; this is true …

Using proprietary individual level loan data, this paper explores the economic consequences of the 2009 bank entry … corporate loans from entrant banks. Consequently, in deregulated cities, private firms with bank credit access increase asset … following deregulation. Deregulation also amplifies bank credit from productive private firms to inefficient SOEs due mainly to …

effects from cross-border bank takeovers with those of cross-border lending by banks located overseas, which in most cases …

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …