Bank competition and stability

Cross-country heterogeneity

T.H.L. Beck, O.G. De Jonghe, G. Schepens

Research output: Contribution to journalArticleScientificpeer-review

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.
Original languageEnglish
Pages (from-to)218-244
JournalJournal of Financial Intermediation
Volume22
Issue number2
DOIs
Publication statusPublished - 2013

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Fragility
Bank competition
Bank stability
Information sharing
Stock exchange
Regulatory reform
Deposit insurance
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title = "Bank competition and stability: Cross-country heterogeneity",
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.",
author = "T.H.L. Beck and {De Jonghe}, O.G. and G. Schepens",
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Bank competition and stability : Cross-country heterogeneity. / Beck, T.H.L.; De Jonghe, O.G.; Schepens, G.

In: Journal of Financial Intermediation, Vol. 22, No. 2, 2013, p. 218-244.

Research output: Contribution to journalArticleScientificpeer-review

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