identification strategy to assess whether an intensification of competition among banks increases or decreases liquidity creation …. Consistent with the predictions of some theoretical models, we find that regulatory-induced competition has a negative effect on … bank liquidity creation and these liquidity-reducing effects are smaller among more profitable banks and larger among …

process of interstate bank deregulation that lowered barriers to competition across U.S. states over the 1980s and 1990s with … facing each individual bank. We find that regulatory-induced competition reduced liquidity creation. Consistent with some …Does an intensification of competition among banks increase or decrease liquidity creation? By integrating the dynamic …