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This handbook provides an overview and analysis of state-of-the-art research in banking written by leading researchers …
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The remote inland province of Shanxi was late Qing dynasty China’s paramount banking center. Itsremoteness and China …’s almost complete isolation from foreign influence at the time lead historiansto posit a Chinese invention of modern banking …
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Banks face two moral hazard problems: asset substitution by shareholders (e.g., making risky, negative net present value loans) and managerial rent seeking (e.g., investing in inefficient “pet” projects or simply being lazy and uninnovative). The privately optimal level of bank leverage is...
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Banks face two different kinds of moral hazard problems: asset substitution by shareholders (e.g., making risky, negative net present value loans) and managerial rent seeking (e.g., investing in inefficient “pet” projects and consuming perquisites that yield private benefits). The privately...
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