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Title:Loan market equilibrium with difference of opinion and imperfect competition PDF Logo
Authors:Hyytinen, Ari
Issue Date:2002
Series/Report no.:ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 748
Abstract:Difference of opinion between banks and borrowers influences the competitiveness of loan markets: the more optimistic the borrowers, the more elastic the demand for loans. This reduces lending rates, decreases the expected profits of banks and discourages entry by banks. – banking ; competition ; optimism ; difference in opinion ; entry
JEL:D43
G21
Document Type:Working Paper
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy (ETLA)

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