1.

Record Nr.

UNINA9910464014103321

Autore

De Nicoló Gianni

Titolo

Financial intermediation, competition, and risk [[electronic resource] ] : a general equilibrium exposition / / prepared by Gianni De Nicolo and Marcella Lucchetta

Pubbl/distr/stampa

[Washington D.C.], : International Monetary Fund, 2009

ISBN

1-4623-6889-1

1-4527-8538-4

1-4518-7252-6

9786612843204

1-282-84320-6

Descrizione fisica

1 online resource (31 p.)

Collana

IMF working paper ; ; WP/09/105

Altri autori (Persone)

LucchettaMarcella

Soggetti

Intermediation (Finance)

Competition

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Table of Contents; I. Introduction; II. The Basic Model; A. Time, Endowments and Preferences; B. Technologies; C. Contracts and Information; III. Equilibrium with Banks and Depositors; A. Moral Hazard; B. No Moral Hazard; IV. Optimality and Intermediary Rents; V. Equilibrium with Firms, Intermediaries and Depositors; A. The Extended Model; B. Perfectly Correlated Projects; C. Independent Projects; VI. Conclusion; Appendix; References

Sommario/riassunto

We study a simple general equilibrium model in which investment in a risky technology is subject to moral hazard and banks can extract market power rents. We show that more bank competition results in lower economy-wide risk, lower bank capital ratios, more efficient production plans and Pareto-ranked real allocations. Perfect competition supports a second best allocation and optimal levels of bank risk and capitalization. These results are at variance with those obtained by a large literature that has studied a similar environment in partial equilibrium. Importantly, they are empirically rele