Private banks often blame state guarantees to distort competition by giving public banks the advantage of lower funding … 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 studies whether greater competition can mitigate agency problems within banks. We measure the intensity of … the agency conflict within a bank by the volume of loans that the bank lends to its insiders (e.g., executives). We first … banks react to greater competition by reducing insider lending, especially when the entry of new competitors may more …

This paper studies whether greater competition can mitigate agency problems within banks. We measure the intensity of … the agency conflict within a bank by the volume of loans that the bank lends to its insiders (e.g., executives). We first … banks react to greater competition by reducing insider lending, especially when the entry of new competitors may more …