Who Monitors the Monitor ? Bank Capital Structure and Borrower Monitoring

@inproceedings{Olin2014WhoMT,
  title={Who Monitors the Monitor ? Bank Capital Structure and Borrower Monitoring},
  author={Sudarshan Jayaraman Olin},
  year={2014}
}
  • Sudarshan Jayaraman Olin
  • Published 2014
The role that banks play in screening and monitoring their borrowers is well understood. However, these bank activities are costly and unobservable, thus difficult to contract upon. This introduces the possibility of shirking and leads to the question – who monitors the monitor? Financial intermediation theories posit that bank capital structure plays such… CONTINUE READING