On the Foundations of Credit Rationing

Discover the intricate dynamics of credit markets in On the Foundations of Credit Rationing by Helena Maria Krebs, published in 2024 by Springer-Verlag Berlin and Heidelberg GmbH & Co. KG. This insightful book delves into the concept of equilibrium credit rationing, exploring how banks compete for loans and deposits through a double-sided Bertrand game. With 140 pages of in-depth analysis, Krebs highlights the critical influence of bank equity and its distribution on lending practices. Learn how banks with robust equity can provide affordable loans while turning away excess applicants, leaving those with lower equity to offer loans at higher rates. This book is essential for anyone interested in the complexities of banking, finance, and economic theory. Enhance your understanding of credit markets and the factors that shape them with this compelling read.