IMF working paper on bank competition

IMF headquarters in Washington DC

A working paper released by the International Monetary Fund's research department in December looks at banking competition and financial stability implications.

In the paper, titled Bank competition and financial stability: A general equilibrium exposition, authors Gianni De Nicolò and Marcella Lucchetta study versions of a general equilibrium banking model with moral hazard under either the constant or increasing returns to scale of the intermediation technology used by banks to screen and/or

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