search query: @author Yosha, O. / total: 10
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| Author: | Yosha, O. |
| Title: | Diversification and competition: Financial intermediation in a large Cournot-Walras economy |
| Journal: | Journal of Economic Theory
1997 : JUL, VOL. 75:1, p. 64-88 |
| Index terms: | COMPETITION DIVERSIFICATION FINANCIAL INTERMEDIARIES |
| Language: | eng |
| Abstract: | In a developing economy centralized securities markets are not very developed. Financial intermediaries are key to risk shearing. There is a viability problem in a developing economy for a large number of financial institutions. So, an oligopolistic market structure in the financial sector of such economies should be found. To diversify their asset portfolio is not easy for financial intermediaries in a developing country. In a developing country there is monopoly power in the intermediation sector and each intermediary is poorly diversified. This analysis suggests that as the economy grows, the number of financial intermediaries should be allowed to increase, and intermediaries should be encouraged to become larger and more diversified. |
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