Credit Rationing Under a Deregulated Financial System

Maria Lucila A. Lapar and Douglas H. Graham

No WP 1988-19, Working Papers from Philippine Institute for Development Studies

Abstract: The analysis of credit rationing in the context of the classical equilibrium model implies the existence of financial repression where interest rates are controlled. Given fixed interest rates at a level lower than the market clearing rates, borrowers are expected to demand more loans than lenders are willing to supply. Hence, the limited loan supply tends to discriminate against some borrowers. This paper examines the extent of credit rationing applied by rural financial institutions under a regime of financial liberalization. Specifically, the paper determines the signaling devices and screening mechanisms employed by different types of rural financial institutions.

Keywords: financial sector; financial system; credit rationing (search for similar items in EconPapers)
Pages: 29
Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.pids.gov.ph/publication/working-papers ... ted-financial-system (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:phd:wpaper:wp_1988-19

Access Statistics for this paper

More papers in Working Papers from Philippine Institute for Development Studies Contact information at EDIRC.
Bibliographic data for series maintained by Michael Ralph M. Abrigo ().