He, Xuehui; Wang, Yiming - In: Journal of Economic Policy Reform 10 (2007) 4, pp. 325-333
We find that the measurement cost of creditworthiness is important when considering the behavior of banks. A set of credit infrastructures, i.e. a credit rating system, will help to increase the incentive of the banks to make unsecured credit loans, and thus help financial development. However,...