search query: @indexterm investor protection / total: 34
reference: 28 / 34
| Author: | Chu, K. H. |
| Title: | Free banking and information asymmetry |
| Journal: | Journal of Money, Credit and Banking
1999 : NOV, VOL. 31:4, p. 748-762 |
| Index terms: | Banking Market information Market conditions Investor protection |
| Language: | eng |
| Abstract: | The paper shows that in a separating equilibrium a higher-quality bank offers a lower deposit rate and holds a smaller proportion of risky loans than a lower-quality bank to signal its underlying quality. Hence, free banking is not inherently unstable. The empirical results for the Hong Kong banking system during 1984-65 are consistent with the hypothesis of a separating equilibrium. |
SCIMA