01821cas a2200253 a 4500 AALejournalIMF001384 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451843842 1018-5941 BD-DhAAL BD-DhAAL Dell'Ariccia, Giovanni. Flight to Quality or to Captivity : Information and Credit Allocation / Giovanni Dell'Ariccia, Robert Marquez. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (25 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 Superior information exchanged over the course of lending relationships generates bank-client specificities to the extent that such information cannot be communicated credibly to outsiders. Consequently, banks obtain higher profits from more captured borrowers than from borrowers with financing alternatives. We refer to this as a 'flight to captivity' effect. Negative shocks, associated with monetary contractions or foreign entry, cause a reallocation of bank credit away from more transparent borrowers and toward more opaque, more captured borrowers. The paper applies these ideas to the analysis of bank behavior in transition economies after financial liberalization and monetary policy contractions. Mode of access: Internet Marquez, Robert. IMF Working Papers; Working Paper ; No. 2001/020 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/020/001.2001.issue-020-en.xml IMF e-Library