Wong, Kit Pong - In: Economic Modelling 42 (2014) C, pp. 140-145
forced to assume the entire funding cost uncertainty by exclusively extending fixed rate loans. Finally, using a two …-state example, we show that the bank optimally extends more (less) fixed rate loans than in the case of pure risk aversion if the … rate loans. If the bank optimally extends both fixed and variable rate loans, the total amount of loans depends neither on …