![On the Foundations of Credit Rationing - Helena Maria Krebs](https://www.booktopia.com.au/covers/big/9783658444884/3809/on-the-foundations-of-credit-rationing.jpg)
At a Glance
ePUB
eBook
RRP $129.00
$116.99
or 4 interest-free payments of $29.25 with
orInstant Digital Delivery to your Booktopia Reader App
Helena Maria Krebs analyzes equilibrium credit rationing when banks compete for loans and deposits in a double-sided Bertrand game. Borrowers and lenders are allowed to switch market sides. Thus, investors do not only base their decisions on loan rates, but also on opportunity costs in the form of deposit rates. Credit rationing may occur if adverse selection due to borrowers' informational advantage leads to a lower expected return on loans if the loan rate increases. In that case, banks may have an incentive to offer loan rates below the market-clearing rate. At these rates loan demand exceeds loan supply. The author reveals the important role of bank equity and its distribution: Banks with high equity offer cheap loans and reject superfluous loan applicants, whom banks with low equity then offer expensive loans. Thereby expensive banks realize a higher expected return on loans thancheap banks. Furthermore, this book is the first to formally model the process of acceptance and rejection of loan applicants as a separate stage of the double-sided Bertrand game after banks have decided on their interest rates. It is shown that for fixed chosen interest rates, the deposit and loan volumes of all banks in a subgame perfect Nash equilibrium of the resource allocation game are uniquely determined.
on
ISBN: 9783658444884
ISBN-10: 3658444886
Published: 1st July 2024
Format: ePUB
Language: English
Publisher: Springer Nature
You Can Find This eBook In
![Financially Ever After : The Couples' Guide to Managing Money - Jeff D. Opdyke](https://www.booktopia.com.au/covers/200/9780061971037/8815/financially-ever-after.jpg)
eBOOK
RRP $28.59
$22.99
OFF
![Think Big : Make It Happen in Business and Life - Donald J. Trump](https://www.booktopia.com.au/covers/200/9780061753893/1806/think-big.jpg)
eBOOK
RRP $31.89
$25.99
OFF
![Do Cool Sh*t : Quit Your Day Job, Start Your Own Business, and Live Happily Ever After - Miki Agrawal](https://www.booktopia.com.au/covers/200/9780062261564/null/do-cool-sh-t.jpg)
eBOOK
RRP $31.89
$25.99
OFF
![Man vs. Markets : Economics Explained (Plain and Simple) - Paddy Hirsch](https://www.booktopia.com.au/covers/200/9780062196668/1009/man-vs-markets.jpg)
eBOOK
RRP $27.49
$21.99
OFF
![Amazon.com : Get Big Fast - Robert Spector](https://www.booktopia.com.au/covers/200/9780061853128/3906/amazon-com.jpg)
eBOOK
$22.99
![Taken for a Ride : How Daimler-Benz Drove Off with Chrysler - Bill Vlasic](https://www.booktopia.com.au/covers/200/9780061877803/7707/taken-for-a-ride.jpg)
eBOOK
RRP $34.09
$27.99
OFF
![So You Want to Write a Novel : A Direct, Practical, Step-by-Step Guide for the Aspiring Author - Lou Willett Stanek](https://www.booktopia.com.au/covers/200/9780062268327/null/so-you-want-to-write-a-novel.jpg)
eBOOK
RRP $14.29
$11.99
OFF
![Acquiring More Profit - Implementation System - George Slusser](https://www.booktopia.com.au/covers/200/9798988038849/5209/acquiring-more-profit-implementation-system.jpg)
eBOOK
RRP $133.09
$119.99
OFF
![Financial Inclusion, Technology and Virtual Banking : A Theoretical Perspective - Sau Wai Law](https://www.booktopia.com.au/covers/200/9789819711277/2106/financial-inclusion-technology-and-virtual-banking.jpg)
eBOOK
RRP $219.00
$197.99
OFF
![Fund Your Business : Smart Strategies to Secure Financing - The Staff of Entrepreneur Media](https://www.booktopia.com.au/covers/200/9781613084717/7118/fund-your-business.jpg)
eBOOK
RRP $21.99
$17.99
OFF
![New Initiatives in the Malaysian Capital Market : With a Focus on LEAP and SPAC - Hon Wei Leow](https://www.booktopia.com.au/covers/200/9789819709809/4209/new-initiatives-in-the-malaysian-capital-market.jpg)
eBOOK
RRP $64.99
$58.99
![Financing the Entrepreneurial Venture : A Casebook - Paul A. Gompers](https://www.booktopia.com.au/covers/200/9781839991493/9508/financing-the-entrepreneurial-venture.jpg)
eBOOK
RRP $123.24
$110.99
OFF
![Tokenization in Real Estate : Opportunities and Challenges - Elena Schmid](https://www.booktopia.com.au/covers/200/9783031558108/4009/tokenization-in-real-estate.jpg)
eBOOK
RRP $74.99
$67.99
![On the Foundations of Credit Rationing - Helena Maria Krebs](https://www.booktopia.com.au/covers/200/9783658444884/3809/on-the-foundations-of-credit-rationing.jpg)
eBOOK
RRP $129.00
$116.99