offers.We show that these deregulations may be insuficient since asymmetric information seriously hampers the integration of … financial integration.These initiatives allow new entrants to "poach" the incumbents' clients by offering them attractive loan …-a-vis potential entrants.More-over, banks may strategically display some information hindering entry when asymmetric information is …

in a two-period model with adverse selection where banks strategically commit to disclose borrower information.By doing … this, they invite rivals to enter their market.Disclosure of borrower information increases an entrant's second …