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Banking has grown too much in Europe - in three senses. First, the European banking system has reached a size where its contribution to real economic growth is likely to be nil or negative. Second, the European financial structure is biased towards banks (rather than securities markets), which...
Persistent link: https://www.econbiz.de/10013248815
Banking has grown too much in Europe - in three senses. First, the European banking system has reached a size where its contribution to real economic growth is likely to be nil or negative. Second, the European financial structure is biased towards banks (rather than securities markets), which...
Persistent link: https://www.econbiz.de/10011971215
Persistent link: https://www.econbiz.de/10013428296
Persistent link: https://www.econbiz.de/10003973876
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competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … will intensify if both banks collateralize. Moreover, bank competition is welfare improving if collateralization is rather … are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and …
Persistent link: https://www.econbiz.de/10003951390
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competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … will intensify if both banks collateralize. Moreover, bank competition is welfare improving if collateralization is rather … are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and …
Persistent link: https://www.econbiz.de/10010365861
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