If we take in consideration the profound structural discrepancies from the Romanian agriculture and rural environment, of the extended state of severe poorness from the rural areas, as well as the budgetary restrictions, which appear to main on the medium term, it is showed the importance of a...

This paper formulates a new theory of financial intermediation and explains the general structure of credit markets. Borrowers without established credit histories have incentives to repudiate their debt obligations, and are therefore unable to issue debt directly. Banks exist in order to...