Banks, Development Financial Institutions and Credit Markets in India: A Simple Model of Financial Intermediation
MPRA Paper from University Library of Munich, Germany
The paper examines the interaction between a bank and a development financial institution (DFIs) in a macroeconomic set-up, both of whom can lend for working capital and investment finance purposes. Our analysis reveals that the reduction in the interest rate premium on bonds over the deposit rate is an important pre-requisite for the DFI to raise its market share in both investment finance and working capital lending. Also, greater corporate access to bond financing raises investment, output and the bond rate of interest. The policy implications of the analysis are examined
Keywords: Universal banking; investment finance; working capital lending; bond financing; interest premium (search for similar items in EconPapers)
JEL-codes: G28 G21 (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations Track citations by RSS feed
Published in Indian Economic Review 1.38(2003): pp. 77-93
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/17349/1/MPRA_paper_17349.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:17349
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany
Address: Schackstr. 4, D-80539 Munich, Germany
Contact information at EDIRC.
Series data maintained by Ekkehart Schlicht ().