competition and stability in banking. There are two basic channels through which competition may increase instability: by … incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the … implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on …

III rules, thus suggesting a ‘race to the top' in capital standards. We study regulatory competition when banks are … coordinated ones when governments care equally about bank profits, taxpayers, and consumers …

bank market values hardly respond to changes in the default risk of individual systemic banks. Together, however, changes …

This paper estimates ordered logit and probit regression models for bank ratings which also include a country index to … bank ratings assigned by Fitch Ratings are underpinned by fundamental quantitative financial analyses. Also, there is … strong evidence of a country effect. Our model is shown to provide accurate predictions of bank ratings for the period prior …

ratio) and size (TBA) of the industry are linked to lower sovereign risk in general. Foreign bank penetration and … competition (a more diversified structure of the industry) are linked to lower sovereign risk. Our results also support the wake …