Bank Competition and Stability

Cross-country Heterogeneity (Revised version of EBC DP 2011-019)

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

Research output: Working paperDiscussion paperOther research output

131 Downloads (Pure)

Abstract

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
Place of PublicationTilburg
PublisherEBC
Number of pages55
Volume2012-026
Publication statusPublished - 2012

Publication series

NameEBC Discussion Paper
Volume2012-026

Fingerprint

Fragility
Bank competition
Bank stability
Information sharing
Stock exchange
Regulatory reform
Deposit insurance
Credit

Keywords

  • Competition
  • Stability
  • Banking
  • Herding
  • Deposit Insurance
  • Information Sharing
  • Risk Shifting

Cite this

Beck, T. H. L., De Jonghe, O. G., & Schepens, G. (2012). Bank Competition and Stability: Cross-country Heterogeneity (Revised version of EBC DP 2011-019). (EBC Discussion Paper; Vol. 2012-026). Tilburg: EBC.
@techreport{7d000b0739724634bde22290d8274f26,
title = "Bank Competition and Stability: Cross-country Heterogeneity (Revised version of EBC DP 2011-019)",
abstract = "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.",
keywords = "Competition, Stability, Banking, Herding, Deposit Insurance, Information Sharing, Risk Shifting",
author = "T.H.L. Beck and {De Jonghe}, O.G. and G. Schepens",
note = "This is also CentER Discussion Paper 2012-085 Pagination: 55",
year = "2012",
language = "English",
volume = "2012-026",
series = "EBC Discussion Paper",
publisher = "EBC",
type = "WorkingPaper",
institution = "EBC",

}

Beck, THL, De Jonghe, OG & Schepens, G 2012 'Bank Competition and Stability: Cross-country Heterogeneity (Revised version of EBC DP 2011-019)' EBC Discussion Paper, vol. 2012-026, EBC, Tilburg.

Bank Competition and Stability : Cross-country Heterogeneity (Revised version of EBC DP 2011-019). / Beck, T.H.L.; De Jonghe, O.G.; Schepens, G.

Tilburg : EBC, 2012. (EBC Discussion Paper; Vol. 2012-026).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Bank Competition and Stability

T2 - Cross-country Heterogeneity (Revised version of EBC DP 2011-019)

AU - Beck, T.H.L.

AU - De Jonghe, O.G.

AU - Schepens, G.

N1 - This is also CentER Discussion Paper 2012-085 Pagination: 55

PY - 2012

Y1 - 2012

N2 - 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.

AB - 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.

KW - Competition

KW - Stability

KW - Banking

KW - Herding

KW - Deposit Insurance

KW - Information Sharing

KW - Risk Shifting

M3 - Discussion paper

VL - 2012-026

T3 - EBC Discussion Paper

BT - Bank Competition and Stability

PB - EBC

CY - Tilburg

ER -