01778cas a2200241 a 4500 AALejournalIMF000656 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451951547 1018-5941 BD-DhAAL BD-DhAAL Dell'Ariccia, Giovanni. Asymmetric Information and the Market Structure of the Banking Industry / Giovanni Dell'Ariccia. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper analyzes the effects of informational asymmetries on the market structure of the banking industry in a multi-period model of spatial competition. All lenders face uncertainty with regard to borrowers' creditworthiness, but, in the process of lending, incumbent banks gather proprietary information about their clients, acquiring an advantage over potential entrants. These informational asymmetries are an important determinant of the industry structure and may represent a barrier to entry for new banks. The paper shows that, in contrast with traditional models of horizontal differentiation, the steady-state equilibrium is characterized by a finite number of banks even in the absence of fixed costs. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/092 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/092/001.1998.issue-092-en.xml IMF e-Library