(NMS) are highly dependent on a few West-European banks and thus vulnerable to contagion effects. The Nordic and Baltic … financial crisis had such a large impact on European banks. …

sector: in relatively opaque banking systems, fair pricing exacerbates banks' incentive to take excessive risks, whereas the …

(NMS) are highly dependent on a few West-European banks and thus vulnerable to contagion effects. The Nordic and Baltic … financial crisis had such a large impact on European banks. …

sector: in relatively opaque banking systems, fair pricing exacerbates banks' incentive to take excessive risks, whereas the …

banks' dependence on individual bank managers as private information in the lending process declines. In this paper we argue … that this has two effects on banks, with opposing implications for banking stability. First, the hold-up problem between … bank managers and shareholders becomes less severe. Consequently, banks' capital structure needs to be less concerned with …