Using the Panzar and Rosse H-Statistic as a measure of competition in 45 countries, we find that more competitive banking systems are less prone to experience a systemic crisis and exhibit increased time to crisis. This result holds even when we control for banking system concentration, which is...

Does competition improve bank insolvency risk through a revenue diversification channel and what are the drivers that underlie diversification? Using a panel dataset of 978 banks, H-statistic and the Lerner index as measures of the degree of competition in the banking sector, and employing three...