XF-I1CC5FE-7 Intermediation variety
Abstract
ABSTRACT We explain why banks and nonbank intermediaries coexist in a model based only on differences in their funding costs. Banks enjoy a low cost of capital due to safety nets and money‐like liabilities. We show that this can actually be a disadvantage: it generates a soft‐budget‐constraint problem that makes it difficult for banks to credibly threaten to withhold additional funding to failed projects. Nonbanks emerge to solve this problem. Their high cost of capital is an advantage: it allows them to commit to terminate funding. Still, nonbanks never take over the entire market, but other coexist with banks in equilibrium.
Source: resolved
Verification
XFIDs are content-addressed: these SHA-256 fingerprints let anyone confirm a copy of this document is identical to what XFID retrieved on 5 May 2026 — independent of this registry.
The canonical-content hash survives re-downloads, URL moves, and byte-level re-encodes: the same disclosure text always resolves to this XFID.
Topics
Cited by (1)
Other RESEARCH documents in the registry that cite this work.
How to Cite This Record
Use the XFID in citations to create a stable, permanent reference that resolves to this registry entry regardless of the source URL.
Wiley (Business Strategy and the Environment) (2021). Intermediation variety. XFID: XF-I1CC5FE-7. Retrieved from https://xframework.id/XFI1CC5FE7
XF-I1CC5FE-7