Table of Contents:
  • 1. Introduction
  • 2. The model
  • 3. Welfare implications of separated banks
  • 4. Welfare implications of an integrated financial system
  • 5. Optimal financial integration
  • 6. Interbank and the implementation of the constraint efficient risk-sharing
  • 7. Alternative market mechanisms
  • 8. Merger
  • 9. Conclusion
  • Appendix
  • References.