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 …

model, enhancing transparency above a certain level may lead to the inefficient liquidation of a bank. The reason lies in … the downside risk. Accordingly, depositors will not take into account possible future upside gains of the bank when … inefficient bank runs …

among depositors or information asymmetries between depositors and bank managers to explain bank runs. This Article provides …

financial reports, i.e., in the misreporting period. Drawing upon finance theory that recognizes banks' superior information …

credit. We estimate a structural model of credit demand, loan use, pricing, and firm default using matched firm-bank data …

Banks produce short-term debt for transactions and storing value. The value of bank money must not vary over time so … information about the bank's loans. To produce safe liquidity banks choose loans with high such costs. Capital markets cannot … produce substitutes for bank money because they involve information revelation. They produce risky liquidity. This trade …

screened and excessive in good times, and is inefficiently rationed during recessions. More bank competition exacerbates the …

The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank …-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a …