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Banking competition may enhance or hinder the financing of small and medium-sized enterprises. Using a survey on the …
Persistent link: https://www.econbiz.de/10014186091
We model how an information asymmetry between the lending bank and the applying firm about the currency structure of firm revenues may affect loan currency choice. Our framework features a trade-off between the lower cost of foreign currency debt and the costs of currency induced loan default....
Persistent link: https://www.econbiz.de/10013092463