Agent-Based Model with Capital and Credit (hereafter CC-MABM). The novelty of this model with respect to the previous …-firms and K-firms resort to bank loans to satisfy their financing needs. There are two-ways feedbacks between markets and …

argument for treating banks as public good. Banks received a great support from governments as a result of the subprime crisis …. G-20 and European Commission recommended new regulations for this sector after crisis. As consequence of banking …

We establish that a monopoly bank never uses collateral as a screening device. A pooling equilibrium always exists in … lending in the sense that some socially productive firms are denied credit due to excessively high interest rate. …