01616cas a2200253 a 4500 AALejournalIMF015111 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475593167 1018-5941 BD-DhAAL BD-DhAAL Chen, Sophia. Uncertainty and Investment : The Financial Intermediary Balance Sheet Channel / Sophia Chen. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (30 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 Rollover risk imposes market discipline on banks' risk-taking behavior but it can be socially costly. I present a two-sided model in which a bank simultaneously lends to a firm and borrows from the short-term funding market. When the bank is capital constrained, uncertainty in asset quality and rollover risk create a negative externality that spills over to the real economy by ex ante credit contraction. Macroprudential and monetary policies can be used to reduce the social cost of market discipline and improve efficiency. Mode of access: Internet United Kingdom imf IMF Working Papers; Working Paper ; No. 2015/065 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/065/001.2015.issue-065-en.xml IMF e-Library