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Bank competition and crises revisited: New results

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  • Diallo, Boubacar

Abstract

We study the relationship between bank competition and stability for 145 countries over the period 1997–2010. We use three measures of bank competition, namely the Boone indicator, the Lerner and the adjusted Lerner indices, and two econometric methods. Our results show that bank competition is detrimental to bank stability, and it also shortens the survival time of banking systems.

Suggested Citation

  • Diallo, Boubacar, 2015. "Bank competition and crises revisited: New results," Economics Letters, Elsevier, vol. 129(C), pages 81-86.
  • Handle: RePEc:eee:ecolet:v:129:y:2015:i:c:p:81-86
    DOI: 10.1016/j.econlet.2015.02.015
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    References listed on IDEAS

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    Cited by:

    1. Fiordelisi, Franco & Mare, Davide Salvatore & Molyneux, Philip, 2015. "State-Aid, Stability and Competition in European Banking," MPRA Paper 67473, University Library of Munich, Germany.
    2. Samangi Bandaranayake & Kuntal Das & W. Robert Reed, 2017. "A Replication of “Are Competitive Banking Systems More Stable?” (Journal of Money, Credit, and Banking, 2009)," Working Papers in Economics 17/01, University of Canterbury, Department of Economics and Finance.
    3. repec:gam:jjrfmx:v:10:y:2017:i:2:p:9-:d:96046 is not listed on IDEAS
    4. repec:eee:riibaf:v:42:y:2017:i:c:p:224-232 is not listed on IDEAS

    More about this item

    Keywords

    Bank competition; Bank concentration; Financial reforms; Banking system fragility;

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • G01 - Financial Economics - - General - - - Financial Crises
    • 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
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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