Borrower's moral hazard, risk premium, and welfare: a comparison of universal and stand-alone banking systems

Does the unification of retail and investment banking necessarily heighten risk in financial markets? Using a simple two period intertemporal model with borrower's moral hazard and uninsured risk, we argue that the integration in financial service markets under universal banking could give rise...

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Bibliographic Details
Main Authors: Banerji, Sanjay, Basu, Parantap
Format: Article
Published: Elsevier 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/39089/