Asymmetric information, investment banking contracts and the certification hypothesis

Article Abstract:

An analysis of investment banking contracts is presented. The analysisis based on a hierarchical study of various certification levels which is conditioned by the reputational capital paradigm. It is shown that the firm commitment-negotiated arrangement exhibits the optimal certification quality. The firm commitment-competitive, best efforts-negotiated and best efforts-competitive arrangements follow as premium quality choices.

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Liquidity, Credit Creation and International Banking

Article Abstract:

Imprudent macroeconomic policies followed by industrialized countries are blamed for risk involved in international bank lending. Credit creation and liquidity of international banks impact on domestic monetary policy. International financial interdependence should be evaluated by modern econometric methods.

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Protectionism and International Banking

Article Abstract:

An open policy to foreign banking and foreign trade is advocated to benefit a domestic economy. An open system will improve world welfare. Protectionism is favored by those countries lacking a competitive advantage. International banking competition is heterogeneous.

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