TY  - BOOK
AU  - Ilonka Rühle
PY  - 2012
CY  - Berlin, Germany
PB  - Peter Lang Verlag
SN  - 0946-0209
SN  - 9783653022100
TI  - Why Banks?
T2  - Microeconomic Foundations of Financial Intermediaries
DO  - 10.3726/978-3-653-02210-0
UR  - https://www.peterlang.com/document/1051866
N2  - In the banking literature the existence of financial intermediaries is generally explained in terms of the transformation of risks, terms and lot-sizes. Yet these functions could also be performed by system of perfect and complete markets. Therefore, the approach taken in Why Banks? is to start by investigating the conditions that, in the real world, render markets imperfect and incomplete, namely asymmetric information distribution and uncertainty. Incentive compatible financing instruments (standard debt contracts as well as equity participation) provide a means of solving these problems. Financial intermediaries ultimately owe their existence to their ability to save transaction costs using these instruments and to solve problems relating to the enforcement of contracts.
KW  - Credits, Institutes, Microcredits
LA  - English
ER  -