Thus capital account convertibility would mean that there is no restriction on conversion of the domestic currency into a foreign currency to enable a resident to acquire any foreign asset or on conversion of a foreign currency to the domestic currency to enable a non-resident to acquire a domestic asset. Assets are diverse.
Hard information is based on accounting data and not on personal knowledge and repeated interaction between lender and borrower. 21 Because soft information is important for lending to small businesses, the supply of credit to small firms may be negatively affected by M&A activity because the resulting larger banks show a preference for transaction-based lending over relationship-based lending.