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 …

granular effects: if markets are very concentrated in terms of the size distribution of banks, idiosyncratic shocks at the bank … of itself, and it may also influence concentration in banking and thus the impact of bank-specific shocks for the … micro-macro panel dataset. Our research has three main findings: First, bank-level shocks significantly impact on GDP …

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

Does enhanced shareholder liability reduce bank failure? We compare the performance of around 4,200 state … results suggest that exposing shareholders to more downside risk can successfully reduce bank failure. …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …

banks. We find that more competition leads to more risk taking. We also examine the effects of bank competition on the …This paper studies empirically the relationship between competition and risk taking in banking markets. We exploit an … unique dataset providing information about all bank loans to Norwegian firms over several years. Rather than relying on …