Federal Reserve Bank of Cleveland
National Preferences for Bank or Market Financing
This article examines the reasons some countries favor bank-based financial systems and others favor markets-based financial systems. We show that when societies are more accepting of ambiguity—and by extension are more trusting—market financing is favored over relationship-based collateral financing by banks.
Cite this item
Raj Aggarwal & John Goodell, "National Preferences for Bank or Market Financing"
, Federal Reserve Bank of Cleveland, Economic Commentary, issue May, 2016.
Keywords: Financial Systems; Banks; Financing
This item with handle RePEc:fip:fedcec:00048
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