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THEORIES OF THE BANKING FIRM: A REVIEW OF THE LITERATURE *
Author(s) -
Swank Job
Publication year - 1996
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1996.tb00632.x
Subject(s) - collateral , credit rationing , loan , economics , work (physics) , business , finance , interest rate , engineering , mechanical engineering
ABSTRACT This paper reviews the theoretical literature on the banking firm. Apart from studies dealing purely with the reasons why banks exist, the survey is fairly comprehensive in that it covers the main categories of microeconomic models of bank behaviour. The emphasis is on recent work, which also includes modern, information‐based, theories of loan commitments, credit rationing, collateral and the bank‐client relationship.