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Both the academic literature and the policy debate on systematic bailout guarantees and Government subsidies have ignored an important effect: in industries where firms may go out of business due to idiosyncratic shocks, Governments may increase the likelihood of (tacit) coordination if they set...
Persistent link: https://www.econbiz.de/10010437796
This paper considers the implications of Generics and Budapest Bank for the legal treatment of vertical restraints (in … Budapest Bank suggests that, insofar as they are capable of producing pro-competitive effects, vertical restraints aimed at …
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This study assesses the impact of the development of financial technology (FinTech) on the market power of traditional banks. We analyze the relationship between FinTech companies and traditional banks based on the barriers-to-entry theory, and verify the resulting hypothesis by using panel data...
Persistent link: https://www.econbiz.de/10013500607
We use exogenous variation in the degree of restrictions to bank competition across Italian provinces to study both the … effects of bank regulation and the impact of deregulation. We find that where entry was more restricted the cost of credit was … increase in bad loans. In provinces where restrictions to bank competition were most severe, the proportion of bad loans after …
Persistent link: https://www.econbiz.de/10012466164
We use exogenous variation in the degree of restrictions to bank competition across Italian provinces to study both the … effects of bank regulation and the impact of deregulation. We find that where entry was more restricted the cost of credit was … increase in bad loans. In provinces where restrictions to bank competition were most severe, the proportion of bad loans after …
Persistent link: https://www.econbiz.de/10012760665
Shadowy Banking is financial activity that is engineered to extract implicit subsidies from government safety nets. It substitutes innovative corporate entities and products for activities that could be performed more straightforwardly within a traditional banking firm. The shadows obscure...
Persistent link: https://www.econbiz.de/10013064107
Exploiting differential interstate branching deregulation across contiguous counties of adjacent states, we investigate the effect of entry threat on incumbent banks' loan loss provisions. Incumbents exposed to entry threat have offsetting incentives; lower provisions make their loan...
Persistent link: https://www.econbiz.de/10012974743