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 …

We measure the consequences of asymmetric information and imperfect competition in the Italian lending market. We show … that banks' optimal price response to an increase in adverse selection varies with competition. Exploiting matched data on … information, mainstream concerns about its effects survive with imperfect competition. …

This paper empirically investigates how organizational hierarchy affects the allocation of credit within a bank. Using … an exogenous variation in organizational design, induced by a reorganization plan implemented in roughly 2,000 bank …

We studied information and interaction processes in six lending relationships between a universal bank and medium sized …, bank monitoring is based mainly on cheap, retrospective and internal data. In case of distress, more expensive, prospective … firm's investments might leave the bank in a very strong bargaining position and distort investment incentives. Therefore …