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Does the size and market structure of the banking sector have an effect on the financial stability of the European Union?

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  • Pawlowska, Malgorzata

Abstract

The aim of this paper is to discuss changes in the banking sectors of European Union (EU) countries both before and during the last global financial crisis, with particular emphasis on the change in market structure, in an attempt to determine the relationship between size, competition, and risk-taking behavior by banks. This paper also addresses the problems in the banking sector of the EU (i.e., that banks are too-big-to-fail [TBTF]).

Suggested Citation

  • Pawlowska, Malgorzata, 2016. "Does the size and market structure of the banking sector have an effect on the financial stability of the European Union?," The Journal of Economic Asymmetries, Elsevier, vol. 14(PA), pages 112-127.
    • Handle: RePEc:eee:joecas:v:14:y:2016:i:pa:p:112-127
    DOI: 10.1016/j.jeca.2016.07.009
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    10. Kouretas, Georgios P. & Pawłowska, Małgorzata, 2020. "Does change in the market structure have any impact on different types of bank loans in the EU?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 65(C).
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    12. Samangi Bandaranayake & Kuntal K. Das & W. Robert Reed, 2018. "A Replication of “Bank Competition and Financial Stability: Much Ado About Nothing?” (Journal of Economic Surveys, 2016)," Working Papers in Economics 18/18, University of Canterbury, Department of Economics and Finance.
    13. El Moussawi, Chawki & Goutte, Stéphane & Kouki, Imen & Obeid, Hassan, 2024. "Assessing the impact of the expansion of pan-African banks and the institution’s quality on African banking stability," Research in International Business and Finance, Elsevier, vol. 70(PA).
    14. Shijaku, Gerti, 2017. "Bank Stability and Competition: Evidence from Albanian Banking Market," MPRA Paper 79891, University Library of Munich, Germany.
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    18. Belén Díaz Díaz & Rebeca García‐Ramos & Myriam García Olalla, 2020. "Does regulating remuneration affect the market value of European Union banks? Large versus small/medium sized banks," Regulation & Governance, John Wiley & Sons, vol. 14(1), pages 150-164, January.
    19. Albaity, Mohamed & Mallek, Ray Saadaoui & Noman, Abu Hanifa Md., 2019. "Competition and bank stability in the MENA region: The moderating effect of Islamic versus conventional banks," Emerging Markets Review, Elsevier, vol. 38(C), pages 310-325.
    20. Shijaku, Gerti, 2016. "Does bank competition affect bank stability after the global financial crisis?," MPRA Paper 79084, University Library of Munich, Germany.
    21. Georgios P. Kouretas & Małgorzata Pawłowska, 2025. "Impact of Digital Technology on Traditional Banking: A Case From the Credit Market in the European Union," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(2), pages 468-488, March.
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    23. Akbar, Syed Waqar & Rehman, Ajid Ur & Bouri, Elie & Ijaz, Muhammad Shahzad & Arshad, Imran, 2024. "Socio-economic issues and bank stability: The moderating role of competition," Research in International Business and Finance, Elsevier, vol. 71(C).

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    Keywords

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    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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