Bank's Loans to Developing Countries: A Normative Approach

Kazuhiro Igawa
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Kazuhiro Igawa: Kobe University

Kobe Economic & Business Review, 1989, vol. 34, 27-37

Abstract: Optimal conditions of bank loans are shown in the environment of uncertainty and asymmetric information. These normative conditions make clear how to make new bank loans of international commercial banks to firms (or projects) in developing countries. The conditions also make clear some roles of an international organization, which supervises or assists bank loans for developing countries.

Date: 1989
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