Banking concentration, information asymmetries and credit rationing: The Argentinean case

Arroyo, Martín R. (2007): Banking concentration, information asymmetries and credit rationing: The Argentinean case.

Abstract

This paper highlights the importance of the information efficiency in the banking sector as a way to ensure his correct operation as financial intermediary and the correct functioning of the economy in general. The problems of information in the banks distort their relation with the financing demand and especially with the sector of the SMEs, what really means an important obstacle for the smooth operation of any market system. The analysis is centred in the relative size of the financial institutions, the generation of different types of information and the way how it affects the sector of the SMEs. By means of empirical evidence we will show how the greater size of the banks has influence on the creation of information systems that are not well adapted for some segments of the demand or even they do not generate information at all.

• Item Type: MPRA Paper
• Language: English
• Keywords: Credit rationing; information asymmetries; banking concentration; SME; small medium size company; Argentina; credit; rationing; asymmetries; asymmetry; concentration; banking; Argentinean
• Subjects: G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D45 - Rationing ; Licensing

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