The contribution of institutionally diversified financial sectors to more sustainable growth and financial stability -in particular the role of effective local banking structures -is not always fully appreciated, whether in the context of development cooperation or in policy discussions in the...

This paper presents a model addressing the conditions under which financial instability arises in the event of household debt. The model addresses two main cases. First, household debt is affected by functional income distribution. Second, household debt is affected by credit supply and depends...