Bank Competition and Financial Stability : A General Equilibrium Exposition /

We study versions of a general equilibrium banking model with moral hazard under either constant or increasing returns to scale of the intermediation technology used by banks to screen and/or monitor borrowers. If the intermediation technology exhibits increasing returns to scale, or it is relativel...

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Bibliographic Details
Main Author: Lucchetta, Marcella
Other Authors: De Nicolo, Gianni
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2011.
Series:IMF Working Papers; Working Paper ; No. 2011/295
Online Access:Full text available on IMF
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245 1 0 |a Bank Competition and Financial Stability :   |b A General Equilibrium Exposition /  |c Marcella Lucchetta, Gianni De Nicolo. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2011. 
300 |a 1 online resource (39 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a We study versions of a general equilibrium banking model with moral hazard under either constant or increasing returns to scale of the intermediation technology used by banks to screen and/or monitor borrowers. If the intermediation technology exhibits increasing returns to scale, or it is relatively efficient, then perfect competition is optimal and supports the lowest feasible level of bank risk. Conversely, if the intermediation technology exhibits constant returns to scale, or is relatively inefficient, then imperfect competition and intermediate levels of bank risks are optimal. These results are empirically relevant and carry significant implications for financial policy. 
538 |a Mode of access: Internet 
700 1 |a De Nicolo, Gianni. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2011/295 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2011/295/001.2011.issue-295-en.xml  |z IMF e-Library