文章基本信息

标题：Foreign Entry and Multi-Period Bank Competition Based on Collateral View
本地全文：下载
作者：Xudong Chen
期刊名称：Journal of Financial Risk Management
印刷版ISSN：2167-9533
电子版ISSN：2167-9541
出版年度：2013
卷号：2
期号：1
页码：1-9
DOI：10.4236/jfrm.2013.21001
出版社：Scientific Research Publishing
摘要：This paper constructs the multi-period model of spatial bank competition between the local bank and the foreign bank with financing cost (efficiency) advantage, the results show that: 1) when the amount of the high risk borrowers in the marker reaches a threshold, both banks will use collateral as screening device to distinguish different risk borrowers, only low risk borrowers will borrow money from the bank; 2) the space distance (production differentiation) can help local bank confront the foreign bank’s cost (efficiency) advantage. Further comparative static analysis shows: the bank’s profit decreases with its financing cost, and the bank will require higher loan rate and less collateral with its financing cost increasing; Decreasing transaction cost and better legal environment will facilitate the bank to require more collateral and lower loan rate.
关键词：Multi-Period Bank Competition; Collateral; Screening