Center for Financial Frictions (FRIC)

Center for Financial Frictions (FRIC) is a Center of Excellence established by the Danish National Research Foundation. FRIC investigates the impact of financial frictions on the prices of financial assets, on economic development and on the design and regulation of financial markets. The FRIC Center carries out theoretical and empirical analyses of the impact of financial frictions on the prices of financial assets, on economic development and on the design and regulation of financial markets.
FRIC investigates financial frictions, which are costs or impediments to financial transactions. Financial frictions occur for instance as a result of the varying ease by which financial assets are traded (their liquidity), the transactions costs, borrowing constraints, credit risk, capital requirements for financial institutions, and asymmetric information among market participants.