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Over last two decades, emerging and developing nations have desperately endeavored for efficient banking sectors. In …
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We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our model balance sheet constrained financial intermediaries finance both capital expenditure of intermediate goods producers and government deficits. The financial intermediaries face...
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criticized new regulation on the ground that it would enhance the cost of funds for bank borrowers and deteriorate the bank …
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