We propose a model of bank choice and price negotiation that incorporates three key features of the market: differentiated services, heterogeneous bank valuations of consumers, and search costs. More generally, our goal is to build and estimate a tractable empirical model to analyze...

We analyze the Canadian banking system and focus on the monetary policy implementation and bank behavior during the subprime market crisis. Using a dataset on bilateral credit lines in the Large Value Transfer System (LVTS) through which transactions between banks are cleared together with data...