How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the … impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank … industry specialization. We empirically investigate the impact of interbank competition on bank branch orientation and …

equity and without a reduction in bank risk. Regulatory capital inflation is more pronounced in countries where credit supply …

-level distress costs, and also examines the impact of information asymmetry between banks and firms. When foreign currency funds come … distress costs choose foreign currency loans. When the banks have imperfect information on the currency and level of firms … institutions that aggravate information asymmetries may facilitate foreign currency borrowing. …

competition in the banking sector during the 1970s spurred banks to supply credit through multilateral arrangements. Firms that …

of firm-level distress costs. Under perfect information, if foreign currency funds come at a lower interest rate, all … currency loans. When the banks have imperfect information on the currency and level of firm revenues, even more local earners … switch to foreign currency loans, as they do not bear the full cost of the corresponding credit risk. Thus information …

Ownership and competition in the banking sector are policy concerns around the world that are rarely comprehensively …