We develop a double moral hazard model that predicts that the use of project finance increases with both the political risk of the country in which the project is located and the influence of the lender over this political risk exposure. In contrast, the use of project finance should decrease as...

This study provides new evidence on the emergence of a single Eurozone retail banking market. Given the heterogeneous nature of retail lending in the Eurozone, the study advocates to apply cointegration methodology to investigate integration in the presence of country-specific credit rates. The...

This study investigates the role of project finance as a driver of economic growth. We hypothesize that project finance is beneficial to the least developed economies as it compensates for any lack of domestic financial development. The contractual structure unique to project finance should lead...

This paper investigates the state, development and drivers of banking market integration in the member countries of the Southern African Development Community (SADC) by employing interest rate data. We first conduct a principal component analysis and find evidence for both increasing monetary...

We investigate the determinants of European banking market integration with a focus on the potentially limiting role of cultural and political factors. Employing a unique data set of European cross-border loans and deposits, the study uses various gravity models that are augmented by societal...

This study aims at unifying the empirical research on the financial part of the monetary transmission process in the Eurozone between 1993 and 2002. After endogenously determining structural breaks, we select an optimal pass-through model for a series of national retail interest rates for each...

This study investigates the current state of eurozone banking market integration by applying price convergence and cointegration measures to mortgage and short-term corporate loan rates. These two measures of integration often lead to contradicting conclusions and are therefore comparatively...

Should the European Union grant state aid through an institution like the European Investment bank? This paper evaluates the efficiency of different measures for granting state aid. We use a theoretical model with firms that differ in their creditworthiness and compare different types of...

We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical model incorporating information asymmetries in a spatial competition framework where banks choose between screening the borrower and asking collateral. We show that presence of...