conduct investigations in the search of qualified loan borrowers. The model assumes that the domestic bank has a cost … advantage in evaluating a borrower’s credit quality compared to the competing foreign bank. Despite the cost heterogeneity, an … equilibrium exists in which two such banks coexist in the market. Specifically, the information cost advantaged bank orchestrates …

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 …

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 …

screened and excessive in good times, and is inefficiently rationed during recessions. More bank competition exacerbates the …

This paper addresses the desirability of competition in banking industry. In a model where banks compete on both … three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks' stability …? What can be devices to correct potential negative effects of competition vis à vis financial stability? We find that …

This paper addresses the topic regarding the desirability of competition in banking industry. In a model where banks … investigate three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks …' stability? What can be devices to correct potential negative effects of competition vis à vis financial stability? We find that …

empirical results on the relationship between bank competition and financial stability. The model can be used to define a …A model of imperfectly competitive banks is examined under asymmetric information about borrower quality. Greater bank … competition and a lower risk-free rate raise the screening costs of lending, which can result in pooling Nash equilibria with …

amongst mortgage lenders and adds the idea of lender competition into this framework. Despite this addition, the results are …. When lenders are rational and face potential competition, they are able to use the bidding process as a means of generating …