In this paper, we investigate whether bank competition increases risk taking for the case of the Tunisian banks. Our … on panel data estimations. The econometric results reveal the presence of a positive relationship between competition and …

-taking. As market power is the primary source of franchise value, reduced competition in banking markets has been seen as …

-out guarantee. The reason is that the prospect of a bail-out induces the rotected bank to expand, thereby intensifying competition …

imperfect competition and moral hazard, we show that the introduction of an internal ratings based (IRB) approach improves upon … a competitive advantage and, due to fiercer competition, pushes smaller banks to take higher risks. This may even lead …

This paper studies empirically the relationship between competition and risk taking in banking markets. We exploit an …. The cross-sectional and longitudinal variation in competition in local markets are used to identify the relationship … between competition and risk taking, which we measure by the non-performing loans and loss provision rates of the individual …