costs. In this paper I show that if borrowers perceive the public bank as supporting economic development, private banks may … disadvantage. The public bank's competitive advantage may be offset,independently of what its true objective function is. Even …

This paper shows that bank competition has an intrinsically ambiguous effect on capital accumulation and economic … evidence gathered from recent empirical studies of how bank competition affects the real economy. Our results were obtained by … leads to higher capital accumulation. The opposite is true when entrepreneurs are innately of higher credit quality. -- Bank …