{"product_id":"financial-liberalization-credit-market-imperfections-and-financial-system-stability-von-tim-niepel","title":"Financial Liberalization, Credit Market Imperfections and Financial System Stability","description":"\u003cp\u003eMaster's Thesis from the year 2013 in the subject Business economics - Investment and Finance, grade: 1,5, Utrecht University (Utrecht School of Economics), language: English, abstract: Financial liberalization stimulates competition and thereby supposedly increases\u003c\/p\u003e\u003cp\u003ethe efficiency of investment. A simple credit market model is developed to show that such\u003c\/p\u003e\u003cp\u003eefficiency improvements may be disturbed by competition-induced incentives for banks to\u003c\/p\u003e\u003cp\u003eaccept higher default rates, which result in instability of the financial system. Thereby we\u003c\/p\u003e\u003cp\u003eoffer a complementary explanation to the relationship between competition and stability in\u003c\/p\u003e\u003cp\u003efinancial markets. Consequently we argue that government intervention, in the form of\u003c\/p\u003e\u003cp\u003eintelligent regulation, is necessary to ensure the development of sustainable financial\u003c\/p\u003e\u003cp\u003emarkets.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783656972549\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783656972549","offer_id":39447877484637,"sku":"9783656972549","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/cf556a24-3eae-4245-b061-07cc0c41c5a0.jpg?v=1778214512","url":"https:\/\/shop.autorenwelt.de\/products\/financial-liberalization-credit-market-imperfections-and-financial-system-stability-von-tim-niepel","provider":"Autorenwelt Shop","version":"1.0","type":"link"}