More banks mean higher costs for borrowers
When banks crowd a lending market, you can forget the traditional relationship of supply and demand, in which increased supply normally leads to lower prices. So finds new research from Cesare Fracassi, associate professor of finance at Texas McCombs. "Adverse Selection in Corporate Loan Markets" is...
Image: Phys.org
When banks crowd a lending market, you can forget the traditional relationship of supply and demand, in which increased supply normally leads to lower prices. So finds new research from Cesare Fracassi, associate professor of finance at Texas McCombs. "Adverse Selection in Corporate Loan Markets" is published in The Journal of Finance.
Originally published at Phys.org
