Arbeitspapier
Industry ownership of banks and credit market competition
This paper analyzes the effect of bank participation in the equity of a firm on the competitiveness of the credit market. Using an auction model of bank competition it is shown that an equity stake of one bank is increasing its market power in the market for credits to this firms. The share-owning bank provides credit more often, its profit and the average interest rate increases. If several banks own symmetric stakes, the interest rate decreases. However, if one bank owns an equity stake, no other bank has incentives to own equity of this firm.
- Language
-
Englisch
- Bibliographic citation
-
Series: WZB Discussion Paper ; No. FS IV 97-36
- Classification
-
Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Tröge, Michael
- Event
-
Veröffentlichung
- (who)
-
Wissenschaftszentrum Berlin für Sozialforschung (WZB)
- (where)
-
Berlin
- (when)
-
1997
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Tröge, Michael
- Wissenschaftszentrum Berlin für Sozialforschung (WZB)
Time of origin
- 1997
Other Objects (12)
Market Power, Competition and Ownership in Emerging Economies
The credit rating industry : competition and regulation
The credit rating industry : competition and regulation
Credit market competition and capital regulation
Credit Market Competition and Liquidity Crises
Personal bankruptcy and credit market competition
Credit market competition and liquidity crises
Credit market competition and capital regulation
Credit market competition and the nature of firms
Common Ownership and Market Entry : Evidence from the Pharmaceutical Industry
Common Ownership and Market Entry: Evidence from the Pharmaceutical Industry
Identification and Estimation of Intra-Firm and Industry Competition via Ownership Change
Market Power, Competition and Ownership in Emerging Economies
The credit rating industry : competition and regulation
The credit rating industry : competition and regulation
Credit market competition and capital regulation
Credit Market Competition and Liquidity Crises
Personal bankruptcy and credit market competition
Credit market competition and liquidity crises
Credit market competition and capital regulation
Credit market competition and the nature of firms
Common Ownership and Market Entry : Evidence from the Pharmaceutical Industry
Common Ownership and Market Entry: Evidence from the Pharmaceutical Industry
Identification and Estimation of Intra-Firm and Industry Competition via Ownership Change
Market Power, Competition and Ownership in Emerging Economies
The credit rating industry : competition and regulation
The credit rating industry : competition and regulation
Credit market competition and capital regulation
Credit Market Competition and Liquidity Crises
Personal bankruptcy and credit market competition
Credit market competition and liquidity crises
Credit market competition and capital regulation
Credit market competition and the nature of firms
Common Ownership and Market Entry : Evidence from the Pharmaceutical Industry
Common Ownership and Market Entry: Evidence from the Pharmaceutical Industry