"Under the traditional "competition-fragility" view, more bank competition erodes market power, decreases profit margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative "competition-stability" view, more market power in the loan market may result...

We formulate and test hypotheses about the role of bank ownership type--foreign, state-owned, and private domestic banks--in banking relationships. Our application uses data from India, an important developing nation. The empirical results are consistent with all of our hypotheses with regard to...

Under the traditional "competition-fragility" view, more bank competition erodes market power, decreases profit margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative "competition-stability" view, more market power in the loan market may result in...

Under the traditional quot;competition-fragilityquot; view, more bank competition erodes market power, decreases profit margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative quot;competition-stabilityquot; view, more market power in the loan...

We formulate and test hypotheses about the role of bank ownership type - foreign, state-owned, and private domestic banks - in banking relationships. Our application uses data from India, an important developing nation. The empirical results are consistent with all of our hypotheses with regard...