Using bank level measures of competition and co-dependence, we show a robust negative relationship between bank … competition and systemic risk. Whereas much of the extant literature has focused on the relationship between competition and the … find that greater competition encourages banks to take on more diversified risks, making the banking system less fragile to …

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 …

The paper analyzes the relationship between bank competition and stability, with a specific focus on the Middle East … and North Africa. Price competition has a positive effect on bank liquidity, as it induces self-discipline incentives on … banks for the choice of bank funding sources and for the holding of liquid assets. On the other hand, price competition may …