Sehr geehrte Damen und Herren,
wir laden Sie herzlich zum VOSTA Freitagsseminar mit Herrn Anton van Boxtel, Universität
Wien, mit dem Titel "Credit Market Competition and Liquidity" ein.
Termin:
Freitag, 7. Dezember 2018 um 11.00 Uhr
Ort:
Oesterreichische Nationalbank
Veranstaltungssaal, Erdgeschoss
Otto-Wagner-Platz 3
1090 Wien
Abstract:
This paper studies the effect of non-exclusive competition on liquidity provision in the standard financial intermediation model by Holmström
and Tirole (1998). When the firm in need of funds exclusively deals with an incumbent competitive lender, the latter is willing to provide the up-front investment with a limited liquidity facility in exchange for part of the project's proceeds. If the firm
can also privately contract with an outside lender, there is a difficulty in limiting liquidity provision. The outside lender can free ride upon the liquidity provided by the incumbent lender in exchange for the firm's share of the project's proceeds. Thus
the equilibrium with exclusive competition by Holmström and Tirole (1998) is no longer sustained. We show how the incumbent lender can ward off the outside lender by offering unlimited liquidity support. The observed increase in liquidity holdings by firms
could be explained, among other reasons, by an increased competition in credit market that we capture as a shift from exclusive to non-exclusive contracting environments.
Um Ihre verlässliche
An- bzw. Abmeldung ersuchen wir bis Dienstag,
4. Dezember 2018, unter folgendem
event-management@oenb.at.
Mit freundlichen Grüßen
Event-Management
