In this article we develop a microeconomic framework to study the relationships among privatization, competition for deposits and performance in banking. Particularly, we analyze banking privatization when competitive strategies of the Cournot and Stackelberg types are allowed. Our findings show...

The paper analyzes the effects of financial competition on the management of banking risks when monopolistically competitive intermediaries exist in the deposit market. Banking decisions refer to deposits and reserves. These decisions are constrained by liquidity and solvency risks. These risks...