Risk, Size and Concentration in the Chilean Banking System
AbstractThe possible merger of two of Chile’s largest banks spurred a strong debate. It is claimed that higher levels of bank concentration would significantly increase the aggregate (systemic) risk of the banking system. This assumes implicitly that the bankers’ attitude toward risk taking are correlated with bank size and that current regulations of Chilean banks would not be sufficient to prevent an increase in overall risk. This paper evaluates both at the theoretical and empirical level whether there is any support for this claim.
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Bibliographic InfoArticle provided by Central Bank of Chile in its journal Economía Chilena.
Volume (Year): 4 (2001)
Issue (Month): 1 (April)
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