I study the coexistence of formal and informal finance in underdeveloped credit markets. While weak institutions … (disciplinary effect). By channeling bank capital it reduces banks' agency costs from lending directly to borrowers, limiting banks …' extension of borrower credit (rent-extraction effect). Among other things, the model shows that informal interest rates are …

deepening credit markets dominates for the large majority of states of nature. The paper also uses a detailed bank-level dataset …This paper explores the impact of international financial integration on credit markets in Latin America, using a cross … international financial shocks on aggregate credit and interest rate fluctuations. Nonetheless, the net impact of integration on …

This paper studies the relationship between competition measures at the bank level and the price of credit for non …