The paper constructs an overlapping generations model to evaluate how different bank rescue plans affect banks' risk-taking incentives. For a non-competitive banking industry, we find bailout with tax imposed on the old generation or equity bail-in to be efficient policies in the sense that they...

This paper discusses the impact of deregulation and market integration policies on the structure of European banking markets. The paper argues that whether European integration will lead to an increased exploitation of scale advantages, or not, will depend on the extent to which competition in...