This paper examines the relationship between bank performance and economic growth at the state level. We develop a regional credit view to explain how, due to information costs, regional banking conditions can influence local economic activity by affecting a region's ability to fund local...

An examination of the potential link between local financial problems and regional economic growth, discussing how the health of the financial sector can affect economic performance when credit markets are segmented along regional lines.

An explanation of how regional credit-market performance can affect local economic activity, showing how imbalances in financial capacity across regions cause capital-poor regions to be underfunded. This reduced financial capacity is related to economic activity in states that are experiencing...

An examination of the credit performance of the financial sector in the modern British economy, showing that problems in credit markets associated with debt and default/liquidation can disrupt the production of real financial services necessary to channel funds to efficient investment opportunities.