Multiple Avenues of Intermediation, Corporate Finance and Financial Stability

E Davis ()

No 2001/115, IMF Working Papers from International Monetary Fund

Abstract: Using data from the US, UK, Japan and Canada, this paper provides evidence on the benefits to an economy from "multiple avenues of intermediation". The overall conclusion is that the existence of active securities markets alongside banks is indeed beneficial to the stability of corporate financing, both during cyclical downturns and during banking and securities market crises. The benefit from multiple avenues are greater, the more comparable the size of securities market and intermediated financing, as well as the larger the proportion of companies able to access both loan and securities markets. The analysis raises a number of policy issues and research topics for further investigation.

Keywords: WP; credit market; liquidity crisis; securities issuance; bank lending; securities financing; trade credit; Financial markets and the macroeconomy; corporate finance; investment ratio; debt-securities financing; debt-securities issue equation; adverse selection; loan substitution; debt-securities flow; Credit; Securities markets; Securities; Loans; Bank credit; Europe; Global (search for similar items in EconPapers)
Pages: 52
Date: 2001-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=15235 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2001/115

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().