Bank Concentration and Crises
AbstractMotivated by public policy debates about bank consolidation and conflicting theoretical predictions about the relationship between the market structure of the banking industry and bank fragility, this paper studies the impact of bank concentration, bank regulations, and national institutions on the likelihood of suffering a systemic banking crisis. Using data on 70 countries from 1980 to 1997, we find that crises are less likely in economies with (i) more concentrated banking systems, (ii) fewer regulatory restrictions on bank competition and activities, and (iii) national institutions that encourage competition.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9921.
Date of creation: Aug 2003
Date of revision:
Publication status: published as Beck, Thorsten, Asli Demirguc-Kunt and Ross Levine. "Bank Concentration, Competition, And Crises: First Results," Journal of Banking and Finance, 2006, v30(5,May), 1581-1603.
Note: IFM ME AP
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Other versions of this item:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-COM-2003-08-24 (Industrial Competition)
- NEP-MFD-2003-08-24 (Microfinance)
- NEP-RMG-2003-08-24 (Risk Management)
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