Banking competition and financial fragility: Evidence from panel-data
AbstractWe study how banking competition may affect the stability of banking systems. We develop our study by expanding the failure-determinant methodology to include panel-data techniques and by controlling the effects of financial structure and development. We use indicators for 47 countries between 1990 and 1997. The main findings show that banking concentration and foreign ownership are associated to bank-based financial systems and financial underdevelopment. They also show that banking credit and bank-based financial systems enhance banking fragility. Banking concentration is not a significant determinant. Furthermore our findings suggest that financial structure and, maybe, the property regime matter to assess fragility.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5673.
Date of creation: 29 Oct 2007
Date of revision:
Banks; competition; fragility; financial systems;
Other versions of this item:
- Antonio Ruiz-Porras, 2008. "Banking Competition and Financial Fragility: Evidence from Panel-Data," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 23(1), pages 49-87.
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-17 (All new papers)
- NEP-BAN-2007-11-17 (Banking)
- NEP-BEC-2007-11-17 (Business Economics)
- NEP-CFN-2007-11-17 (Corporate Finance)
- NEP-COM-2007-11-17 (Industrial Competition)
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