Read Financial Intermediation and Deregulation: A Critical Analysis of Japanese Bank-Firm Relationships (Contributions to Economics)

Financial Intermediation and Deregulation: A Critical Analysis of Japanese Bank-Firm Relationships (Contributions to Economics)

T. Miarka

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Description:The author develops a model of bank-firm relationships on the basis of the following general Banks want to prevent moral hazard on the side of their customers. In particular they want to prevent their business customers to use bank credit for purposes different from those that have been negotiated thus damaging the bank's interest. The idea of this model is relatively simple. Banks do not extend a loan if the project for which the money is intended will probably be un profitable. They extend the loan if the success of the project is highly probable and if the revenues from that project are greater than the expenses of the bank for monitoring the customer. Assuming as Miarka does that the results from a successful project are certain, this model is an equivalent to minimizing moni toring costs. In fact, this is the outcome of the model. The banks are known to monitor their loans. They thereby signal to the capital market that they have tested the project. Therefore, the buyer of bonds of the company on the capital market may rest assured that the project is financially sound. The buyers of bonds thus avoid monitoring costs and can grant better credit conditions than the banks. Pur chasers of bor. . ds are free riders on the monitoring of the banks. Miarka tests his model econometrically. The results are amazingly supportive of the model.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Financial Intermediation and Deregulation: A Critical Analysis of Japanese Bank-Firm Relationships (Contributions to Economics). To get started finding Financial Intermediation and Deregulation: A Critical Analysis of Japanese Bank-Firm Relationships (Contributions to Economics), you are right to find our website which has a comprehensive collection of manuals listed.
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ISBN: 3642524257

Description: The author develops a model of bank-firm relationships on the basis of the following general Banks want to prevent moral hazard on the side of their customers. In particular they want to prevent their business customers to use bank credit for purposes different from those that have been negotiated thus damaging the bank's interest. The idea of this model is relatively simple. Banks do not extend a loan if the project for which the money is intended will probably be un profitable. They extend the loan if the success of the project is highly probable and if the revenues from that project are greater than the expenses of the bank for monitoring the customer. Assuming as Miarka does that the results from a successful project are certain, this model is an equivalent to minimizing moni toring costs. In fact, this is the outcome of the model. The banks are known to monitor their loans. They thereby signal to the capital market that they have tested the project. Therefore, the buyer of bonds of the company on the capital market may rest assured that the project is financially sound. The buyers of bonds thus avoid monitoring costs and can grant better credit conditions than the banks. Pur chasers of bor. . ds are free riders on the monitoring of the banks. Miarka tests his model econometrically. The results are amazingly supportive of the model.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Financial Intermediation and Deregulation: A Critical Analysis of Japanese Bank-Firm Relationships (Contributions to Economics). To get started finding Financial Intermediation and Deregulation: A Critical Analysis of Japanese Bank-Firm Relationships (Contributions to Economics), you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.

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