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. Within our framework, we analyze recent applications in the payment industry, including central bank digital currencies, and …
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non-financial firms. A stylised auction-theoretic model is developed to investigate the effects of bank equity stakes in … firms on the competition in bank loans. The main finding is that the largest stake confers a competitive advantage to the … holding bank and constitutes a barrier to entry in equity acquisition, resulting in high interest rates charged to firms. This …
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