Credit policy and rent-seeking among small banks in developing countries /
By: Tolentino, V. Bruce J.
Series: Vol. 14 No. 1 First Sem 1987.Description: p.12-28.Subject(s): Credit policy - Developing countries | Banks - Developing countries - Mathematical modelOnline resources: Click here to access online In: Journal of Philippine DevelopmentSummary: This paper attempts to model some aspects of the small LDC bankers' profit-maximizing, decision-making processes in response to a range of policy actions. Part I lists the assumptions employed in the model and develops an initial exposition of the model in the absence of policy-engendered incentives or constraints. Parts 2 through 4 modify the initial model given operation of policies affecting the bankers' costs and revenues, including: (a) cost-of-fund subsidies, (b) the allocation of relending funds, (c) government equity participation, (d) loan allocation quotas, and finally, (e) interest rate ceilingsThis paper attempts to model some aspects of the small LDC bankers' profit-maximizing, decision-making processes in response to a range of policy actions. Part I lists the assumptions employed in the model and develops an initial exposition of the model in the absence of policy-engendered incentives or constraints. Parts 2 through 4 modify the initial model given operation of policies affecting the bankers' costs and revenues, including: (a) cost-of-fund subsidies, (b) the allocation of relending funds, (c) government equity participation, (d) loan allocation quotas, and finally, (e) interest rate ceilings