Innovation in banking and excessive loan growth /

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Bibliographic Details
Author / Creator:Hardy, Daniel C. L., author.
Imprint:Washington, D.C. : International Monetary Fund, Monetary and Capital Markets Dept., 2008.
©2008
Description:1 online resource (28 pages) : illustrations
Language:English
Series:IMF working paper ; WP/08/188
IMF working paper ; WP/08/188.
Subject:
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12499549
Hidden Bibliographic Details
Other authors / contributors:Tieman, Alexander F., author.
International Monetary Fund. Monetary and Capital Markets Department.
ISBN:1282841394
9781282841390
Notes:"July 2008."
Includes bibliographical references (pages 25-26).
Print version record.
Summary:The volume of credit extended by a bank can be an informative signal of its abilities in loan selection and management. It is shown that, under asymmetric information, banks may therefore rationally lend more than they would otherwise in order to demonstrate their quality, thus negatively affecting financial system soundness. Small shifts in technology and uncertainty associated with new technology may lead to large jumps in equilibrium outcomes. Prudential measures and supervision are therefore warranted.
Other form:Print version: Hardy, Daniel C.L. Innovation in banking and excessive loan growth. Washington, D.C. : International Monetary Fund, Monetary and Capital Markets Dept., 2008