evidence that foreign banking penetration can be associated with a contraction of banking credit, especially in countries with … poor credit markets. Second I present a model in which the presence or the absence of foreign lenders endogenously modifies … firms credit constraints and hence the volume of credit extended in the economy. Specifically, I show on the one hand that …

This paper investigates the impact of heterogeneous wealth on credit allocation from an egalitarian opportunity and an … screening, no inefficiencies in the allocation of credit and equality of opportunity. …

analyzes the implications of the euro for cross-border banking activities. A portfolio model is used which captures the role of … banks as providers of informational and of risk-diversification services. By eliminating exchange rate risks, the euro … enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …

analyzes the implications of the euro for cross-border banking activities. A portfolio model is used which captures the role of … banks as providers of informational and of risk-diversification services. By eliminating exchange rate risks, the euro … enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …

capture differences in credit market integration by variations in the cost for banks to grant credit for cross …This paper shows that currency arrangements impact on credit available through default incentives. To this end we build … a symmetric two-country model with money and imperfect credit market integration. With the Euro Area context in mind, we …

neutral. Furthermore, when controlling for the sectoral allocation of financing, no specific instrument - e.g. bank credit or …