The role of financial intermediaries is to transfer funds from savers to borrowers. Financial intermediaries are able to do so when transaction costs and asymmetric information are too high for direct finance. When borrowers are entrepreneurs and businesses with productive investment opportunities, an efficient system of financial intermediation is necessary to generate growth opportunities and guarantee the smooth operation of an economy. Nevertheless, financial institutions are susceptible to agency problems and inefficiencies that can either result in excessive or insufficient lending. The challenges to efficient and effective lending and the solutions to these challenges are my main research interests.