Bank Size, Reputation, and Debt Renegotiation
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NBER Working Paper No. 2704*
Issued in September 1988
NBER Program(s): ITI
IFM
This paper examines the effect that the coexistence of small and large banks, with different interests in the international market, has on the debt renegotiation process. Making use of a reputational model, we argue that the presence of small banks implies that debtor countries have a harder tine obtaining new money than what they would have absent the small banks.
*Published:
International Economic Review, February, 1992.
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