The Czech Economic Review is published by Charles University in Prague. The journal has been established in year 2007 as a descendant to a traditional Czech-written outlet, Acta Universitatis Carolinae Oeconomica (AUCO). Three issues are published per volume. All articles and communications are available online for free. Printed copies can also be ordered.
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Univerzita Karlova v Praze
Fakulta sociálních věd
Institut ekonomických studií
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110 00 Praha
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CZECH ECONOMIC REVIEW, Vol 2015 No 1 (2016), 74–90
Asymmetric Information, Bank Lending and Implicit Contracts: Differences between Banks
Juha-Pekka Niinimäki
zveřejněno: 31. 03. 2016
Abstract
This paper studies asymmetric information on banks, relationship lending and switching costs. According to the classic theory of relationship banking asymmetric information on borrower types causes an informational lock-in by borrowers: good borrowers are tied to their banks. This paper shows that an informational lock-in effect occurs even if borrowers are identical. Asymmetric information on banks generates an informational lock-in for borrowers. A borrower is tied to the initial bank even if it charges higher loan interest. The borrower is not ready to leave the bank and take a risk that the new bank proves to be even worse.
klíčová slova: asymmetric information; banking; relationship lending; bank competition; switching costs
157 x 230 mm
vychází: 3 x ročně
ISSN: 1802-4696
E-ISSN: 1805-9406