04940oam 22011654 450 991078833550332120230721045657.01-4623-6889-11-4527-8538-41-4518-7252-697866128432041-282-84320-6(CKB)3170000000055261(EBL)1608284(SSID)ssj0000940810(PQKBManifestationID)11528535(PQKBTitleCode)TC0000940810(PQKBWorkID)10955754(PQKB)10049287(OCoLC)645463594(MiAaPQ)EBC1608284(IMF)WPIEE2009105(EXLCZ)99317000000005526120020129d2009 uf 0engurcn|||||||||txtccrFinancial Intermediation, Competition, and Risk : A General Equilibrium Exposition /Gianni De Nicolo, Marcella LucchettaWashington, D.C. :International Monetary Fund,2009.1 online resource (31 p.)IMF Working PapersDescription based upon print version of record.1-4519-1682-5 Includes bibliographical references.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; ReferencesWe 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 relevant, and demonstrate the need of general equilibrium modeling to design financial policies aimed at attaining socially optimal levels of systemic risk in the economy.IMF Working Papers; Working Paper ;No. 2009/105Intermediation (Finance)CompetitionBanks and BankingimfEconometricsimfFinance: GeneralimfLaborimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfGeneral Financial Markets: Government Policy and RegulationimfLabor DemandimfGeneral Financial Markets: General (includes Measurement and Data)imfComputable and Other Applied General Equilibrium ModelsimfBankingimfFinanceimfLabourimfincome economicsimfEconometrics & economic statisticsimfMoral hazardimfSelf-employmentimfCompetitionimfGeneral equilibrium modelsimfBanks and bankingimfFinancial risk managementimfSelf-employedimfEconometric modelsimfIntermediation (Finance)Competition.Banks and BankingEconometricsFinance: GeneralLaborBanksDepository InstitutionsMicro Finance InstitutionsMortgagesGeneral Financial Markets: Government Policy and RegulationLabor DemandGeneral Financial Markets: General (includes Measurement and Data)Computable and Other Applied General Equilibrium ModelsBankingFinanceLabourincome economicsEconometrics & economic statisticsMoral hazardSelf-employmentCompetitionGeneral equilibrium modelsBanks and bankingFinancial risk managementSelf-employedEconometric modelsDe Nicolo Gianni375199Lucchetta Marcella1472689DcWaIMFBOOK9910788335503321Financial Intermediation, Competition, and Risk3685560UNINA