Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46981 
Year of Publication: 
1991
Citation: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1991
Series/Report no.: 
Kiel Working Paper No. 497
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
In developed market economies, banks and other financial institutions perform a variety of vital tasks: they mobilise savings and allocate funds to the optimal uses, they pool investment risks, they exploit scale economies in the evaluation and monitoring of borrowers, and they match the preferences of lenders and borrowers for liquidity and for specific term structures of portfolios. Driven by self-interested owners whose own capital is at risk and by equally self-interested top managers who care for their reputation on the market for top executives, the banks exert financial discipline on their customers.
Document Type: 
Working Paper
Document Version: 
Digitized Version

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