20  As for information production, banks, on behalf of depositors, examine borrowers' future profits from investments and the quality of their assets, assess whether the projected outcome has been achieved after a loan was made, and check whether borrowers' accounting information is correct. Banks demand collateral and/or personal guarantees from borrowers.
Sufficient collateral and personal guarantees alleviate banks' burdens of monitoring firms' accounting information and therefore reduce the cost of information production. Since depositors cannot demand collateral or personal guarantees, the function of information production falls on banks.