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This paper examines the impact of market competition on the stability of Islamic and conventional banks in countries … conventional banks from 19 countries. Our baseline result shows that competition in a dual market erodes banks' stability. The … stability. However, the effect of competition is missing for Islamic banks, suggesting their superiority in having religious …
Persistent link: https://www.econbiz.de/10012922283
The recent financial crisis proved that financial contagion could spread among countries resulting in disruptive effects. In this paper, by modeling and simulating banking system behavior and linkages across countries, we assess, based on data from the BIS and IMF, the possible outcome of...
Persistent link: https://www.econbiz.de/10012626421
-out guarantee. The reason is that the prospect of a bail-out induces the rotected bank to expand, thereby intensifying competition … in the deposit market and depressing other banks' margins. In contrast, the effects on the protected bank's risk taking …
Persistent link: https://www.econbiz.de/10010361991
recent financial crisis. The crisis sparked a growing interest in understanding how and why we have created a world of large …
Persistent link: https://www.econbiz.de/10010514056
recent financial crisis. The crisis sparked a growing interest in understanding how and why we have created a world of large …
Persistent link: https://www.econbiz.de/10011742914
This paper develops a model where large financial intermediaries subject to systemic runs internalize the effect of their leverage on aggregate risk, returns and asset prices. Near the steady-state, they restrict leverage to avoid the risk of a run which gives rise to an accelerator effect. For...
Persistent link: https://www.econbiz.de/10013305673
Persistent link: https://www.econbiz.de/10014535443
Government interventions into the financial system in the form of bail out operations or liquidity assistance are often justified with the systemic importance of large banks for the real economy. In this paper, we test whether idiosyncratic shocks to loan growth at large banks have effects on...
Persistent link: https://www.econbiz.de/10011389111
stability channel of bank competition … during the period 2002-2010. The results show an inverse U-shaped association between market power and bank soundness and … activities, official intervention to bank management and book transparency. However, in markets with higher share of foreign …
Persistent link: https://www.econbiz.de/10013072563
presents evidence showing how competition increases not just individual bank fragility, but the stability of the banking sector …We present empirical evidence documenting how increased competition can affect the fragility of banks using U … organizations (RBOs) increased their share of CRE loans as competition from large banking organizations (LBOs) increased. The paper …
Persistent link: https://www.econbiz.de/10012953643