a particular lending regime while acknowledging the effects on lending and returns caused by the course of the business … cycle. To analyze these issues, we develop a model which incorporates two stylized facts; (i) banks in which lending … entrepreneurs) tend to favor centralized banking while decentralized banks seem better at lending in the wake of an economic …

conservative lending approach, reduces the probability of a credit crunch. Thus, our results suggest some up till now partially …

’ time to maturity reduces the probability of a credit crunch and that a conservative lending approach is intrinsically …