IDEAS home Printed from https://ideas.repec.org/a/spr/joecth/v23y2004i2p383-394.html
   My bibliography  Save this article

Joint liability among bank borrowers

Author

Listed:
  • Philip Bond

Abstract

A common feature of financial intermediaries is that the welfare of one borrower is adversely affected by the poor performance of other borrowers. That is, there exists a degree of joint liability among the borrowers of a financial intermediary. This paper provides an explanation for this observation. It demonstrates that in Krasa and Villamil's [14] formalization of a financial intermediary as a delegated monitor, intermediation with joint liability between borrowers Pareto dominates intermediation without joint liability. Copyright Springer-Verlag Berlin/Heidelberg 2004

Suggested Citation

  • Philip Bond, 2004. "Joint liability among bank borrowers," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 23(2), pages 383-394, January.
    • Handle: RePEc:spr:joecth:v:23:y:2004:i:2:p:383-394
    DOI: 10.1007/s00199-003-0381-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00199-003-0381-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00199-003-0381-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdul Ghafar Ismail & Bayu Taufiq Possumah, 2014. "Poverty and social security in Islam," Chapters, in: M. Kabir Hassan & Mervyn K. Lewis (ed.), Handbook on Islam and Economic Life, chapter 22, pages iii-iii, Edward Elgar Publishing.
    2. Philip Protter & Alejandra Quintos, 2022. "Optimal group size in microlending," Annals of Finance, Springer, vol. 18(1), pages 121-132, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:23:y:2004:i:2:p:383-394. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.