Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank … imposed solvency constraints on banks. However, these constraints may not survive in systems competition, as systems … competition is likely to suffer from the same type of information asymmetry which induced the private market failure and which …

small amount of research on the role competition plays in influencing the overall importance of credit. This paper explores … the possibility that changes in credit market competition may result in a less pronounced effect of credit conditions on …