Why do banks remain passive? In a model of bank-firm relationship we study the trade-off a bank faces when having … defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information … about a firm's type to its competitors. Thereby, asymmetric information between banks is reduced and bank competition …

are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank … competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

Why do banks remain passive? In a model of bank-firm relationship we study the trade-off a bank faces when having … defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information … about a firm’s type to its competitors. Thereby, asymmetric information between banks is reduced and bank competition …

The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank …-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a …

are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank … competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

The effects of bank competition and institutions on credit markets are usually studied separately although both factors … are interdependent. We study the effect of bank competition on the choice of contracts (screening versus collateralized … effects of bank competition on collateralization, access to finance, and social welfare depend on the institutional …

decreased after foreign bank entry. Moreover, while the reduction in interest rates of domestic banks is more pronounced in the …

are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank … competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

Why do banks remain passive? In a model of bank-firm relationship we study the trade-off a bank faces when having … defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information … about a firm's type to its competitors. Thereby, asymmetric information between banks is reduced and bank competition …