Fecht, Falko; Inderst, Roman; Pfeil, Sebastian - House of Finance, Goethe Universität Frankfurt am Main - 2015
We offer a theory of the "boundary of the firm" that is tailored to banking, as it builds on a single inefficiency arising from risk-shifting and as it takes into account both interbank lending as an alternative to integration and the role of possibly insured deposit funding. Amongst others, it...