The effects of bank competition and institutions on credit markets are usually studied separately although both factors … are interdependent. We study the effect of bank competition on the choice of contracts (screening versus collateralized … effects of bank competition on collateralization, access to finance, and social welfare depend on the institutional …

This paper addresses the topic regarding the desirability of competition in banking industry. In a model where banks … investigate three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks …' stability? What can be devices to correct potential negative effects of competition vis à vis financial stability? We find that …