This paper analyses how entry by an international bank into a developing economy a¤ects the credit market equilibrium. It opers a novel explanation of how a foreign entrant overcomes asymmetric information problems, and complements extant hard vs. soft information based theories of credit...

Banks can enter new countries either through greenfield entry or by acquiring local banks. I model the effect of a foreign bank's mode of entry on the stability of the local financial sector. Banks exert costly effort when they extend credit. Limited liability creates an agency problem which...

Motivated by the credit crisis 2007-08, this paper presents a theory of ¶capital market banks¶; banks that use derivative programs to exploit ine¢ ciencies in the capital markets. I model banks. use of asset backed commercial paper (ABCP) programs as a local game, and analyse how these...