competition and a lower risk-free rate raise the screening costs of lending, which can result in pooling Nash equilibria with … empirical results on the relationship between bank competition and financial stability. The model can be used to define a …

We propose a new test to evaluate the impact of horizontal mergers on competition in the banking industry. The test is … and interest rates and consists in comparing the estimated degree of competition in the status- quo, where branching … estimated measures of competition quantifies the impact of the merger. We apply our test to French and Italian mergers …

How can competition enhance bank soundness? Does competition improve soundness via the efficiency channel? Do banks … heterogeneously respond to competition? To answer these questions, we exploit an innovative measure of competition [Boone, J., A New … Way to Measure Competition, EconJnl, Vol. 118, pp. 1245-1261] that captures the reallocation of profits from inefficient …

competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … will intensify if both banks collateralize. Moreover, bank competition is welfare improving if collateralization is rather …

Switching costs are a leading cause of customer lock-in in banking, reducing the extent of competition and increasing … time (a lock-in effect). Thus, the extent of potential competition in Brazilian banking could be severely limited by these …

We use unique data on banks' private risk assessments of corporate borrowers to quantify how competition among banks … affect the risk sensitivity of interest rates in the Norwegian credit market. We show that an increase in competition makes … channel of how the competition-fragility nexus can operate. …