Financial crises are endogenized through institutions related to the corporate sector and the interbank market. Financial crises can emanate from financial institutions which determines the nature of equilibrium in the interbank market. In a pooling equilibrium all illiquid banks are treated in...

This paper is concerned with the general question of the provision of information by financial intermediaries to their customers. Specifically, it analyzes the different ways the market can be organized and its effects on pricing and the level of information investors obtain. We find that market...