Credit rationing when banks are funding constrained |
| |
Authors: | Itai Agur |
| |
Institution: | International Monetary Fund – Singapore Regional Training Institute, Singapore |
| |
Abstract: | Credit crunches, such as in the recent financial crisis, generally occur when banks are themselves funding constrained. We use this observation to repair the workhorse Stiglitz–Weiss model of credit rationing. Recent research has invalidated the distributional assumption on which that model is based. This paper shows that by adding the assumption that banks are capacity constrained, Stiglitz–Weiss rationing can occur again. It discusses how this finding can be related to the current policy debates on bank funding and credit provision. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|