Kobayashi, Mami; Osano, Hiroshi - In: Journal of the Japanese and International Economies 25 (2011) 3, pp. 336-354
We develop a main bank model where the main bank decides whether or not to raise additional funds from the capital market to continue to invest in a borrowing firm when nonmain banks withdraw funds. We show that the threat of withdrawal of nonmain banks is more likely to force the main bank to...
