01531cas a2200241 a 4500 AALejournalIMF005247 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870466 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Innovation in Banking and Excessive Loan Growth. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (28 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 volume of credit extended by a bank can be an informative signal of its abilities in loan selection and management. It is shown that, under asymmetric information, banks may therefore rationally lend more than they would otherwise in order to demonstrate their quality, thus negatively affecting financial system soundness. Small shifts in technology and uncertainty associated with new technology may lead to large jumps in equilibrium outcomes. Prudential measures and supervision are therefore warranted. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2008/188 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/188/001.2008.issue-188-en.xml IMF e-Library