Series: IMF Working Papers
Author(s): Rodolphe Blavy
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2005
Keywords: Bank, monitoring, commitment, asymmetry of information, probability, equation, bank lending, loan commitment, Asymmetric and Private Information, Financial Markets and the Macroeconomy,
The paper proposes a theoretical argument on the nature of bank lending, based on the idea that, through commitment and monitoring, banks overcome basic informational asymmetries with borrowers. By bringing togethe...