Bank competition and stability: Cross-country heterogeneity
Beck,T.H.L. ; De Jonghe,O.G. ; Schepens,G.
Beck,T.H.L.
De Jonghe,O.G.
Schepens,G.
Abstract
This paper documents large cross-country variation in the relationship between bank competition and bank stability and explores market, regulatory and institutional features that can explain this variation. We show that an increase in competition will have a larger impact on banks’ fragility in countries with stricter activity restrictions, lower systemic fragility, better developed stock exchanges, more generous deposit insurance and more effective systems of credit information sharing. The effects are economically large and thus have important repercussions for the current regulatory reform debate.
Description
Appeared earlier as CentER Discussion Paper 2011-080
Date
2013
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
SDG 10 - Reduced Inequalities
Citation
Beck, T H L, De Jonghe, O G & Schepens, G 2013, 'Bank competition and stability : Cross-country heterogeneity', Journal of Financial Intermediation, vol. 22, no. 2, pp. 218-244. https://doi.org/10.1016/j.jfi.2012.07.001
License
info:eu-repo/semantics/restrictedAccess
