Monopolistic Pricing in the Banking Industry: a Dynamic Portfolio Model

Enzo Dia

Finance from University Library of Munich, Germany

Abstract: This work develops a portfolio model of the banking firm where both the size and composition of the portfolio are jointly determined. The model provides a quite simple micro-foundation of the credit channel of the transmission of monetary policy. It allows analysing the pricing policies of the banking firm, and shows how interest rate shocks and credit quality shocks (the real shocks that change expected default costs) affect the equilibrium level of loans and deposits.

JEL-codes: E G (search for similar items in EconPapers)
Pages: 51 pages
Date: 2004-11-11
New Economics Papers: this item is included in nep-fin
Note: Type of Document - pdf; pages: 51
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https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0411/0411025.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpfi:0411025

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