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Author:Giannetti, M.
Title:Bank-firm relationships and contagious banking crises
Journal:Journal of Money, Credit and Banking
2003 : APR, VOL. 35:2, p. 239-261
Index terms:Banking
Financial crises
Freeterms:Contagion
Language:eng
Abstract:It is argued in this paper that in an open economy a banking system with close bank-firm relationships may be easily subject to contagious banking crises because it is difficult to distinguish between "crony capitalism" and "good" main bank relationship. The author shows that, if international investors cannot distinguish the bank type, the distinction between crony capitalism and good main bank relationships becomes very fuzzy.
SCIMA record nr: 252820
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