Bank Competition And Financial Stability

Author : Xavier Vives
Publisher : Princeton University Press
ISBN 13 : 0691210039
Total Pages : 344 pages
Book Rating : 4.32/5 ( download)

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Download or read book Competition and Stability in Banking written by Xavier Vives and published by Princeton University Press. This book was released on 2020-11-03 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: A distinguished economist examines competition, regulation, and stability in today's global banks Does too much competition in banking hurt society? What policies can best protect and stabilize banking without stifling it? Institutional responses to such questions have evolved over time, from interventionist regulatory control after the Great Depression to the liberalization policies that started in the United States in the 1970s. The global financial crisis of 2007–2009, which originated from an oversupply of credit, once again raised questions about excessive banking competition and what should be done about it. Competition and Stability in Banking addresses the critical relationships between competition, regulation, and stability, and the implications of coordinating banking regulations with competition policies. Xavier Vives argues that while competition is not responsible for fragility in banking, there are trade-offs between competition and stability. Well-designed regulations would alleviate these trade-offs but not eliminate them, and the specificity of competition in banking should be accounted for. Vives argues that regulation and competition policy should be coordinated, with tighter prudential requirements in more competitive situations, but he also shows that supervisory and competition authorities should stand separate from each other, each pursuing its own objective. Vives reviews the theory and empirics of banking competition, drawing on up-to-date analysis that incorporates the characteristics of modern market-based banking, and he looks at regulation, competition policies, and crisis interventions in Europe and the United States, as well as in emerging economies. Focusing on why banking competition policies are necessary, Competition and Stability in Banking examines regulation's impact on the industry's efficiency and effectiveness.

Author : Mr.Gianni De Nicolo
Publisher : International Monetary Fund
ISBN 13 : 1463927290
Total Pages : 39 pages
Book Rating : 4.95/5 ( download)

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Download or read book Bank Competition and Financial Stability written by Mr.Gianni De Nicolo and published by International Monetary Fund. This book was released on 2011-12-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study versions of a general equilibrium banking model with moral hazard under either constant or increasing returns to scale of the intermediation technology used by banks to screen and/or monitor borrowers. If the intermediation technology exhibits increasing returns to scale, or it is relatively efficient, then perfect competition is optimal and supports the lowest feasible level of bank risk. Conversely, if the intermediation technology exhibits constant returns to scale, or is relatively inefficient, then imperfect competition and intermediate levels of bank risks are optimal. These results are empirically relevant and carry significant implications for financial policy.

Author : OECD
Publisher : OECD Publishing
ISBN 13 : 9264120564
Total Pages : 87 pages
Book Rating : 4.63/5 ( download)

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Download or read book Bank Competition and Financial Stability written by OECD and published by OECD Publishing. This book was released on 2011-10-05 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report examines the interplay between banking competition and financial stability, taking into account the experiences in the recent global crisis and the policy response to it. The report has been prepared by members of the Directorate of ...

Author :
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.08/5 ( download)

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Download or read book Bank Competition and Financial Stability written by and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : N. Genetay
Publisher : Springer
ISBN 13 : 1137533846
Total Pages : 246 pages
Book Rating : 4.45/5 ( download)

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Download or read book Bank Competition, Efficiency and Liquidity Creation in Asia Pacific written by N. Genetay and published by Springer. This book was released on 2015-07-28 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: Banking market integration in the Asia Pacific has greatly accelerated in recent years, in an environment of many other rapid advances in banking and finance. This has increased competition between domestic and foreign banks, and made the measurement of bank efficiency, competition, and liquidity creation a critical issue for both policy makers and bank managers. This book investigates important policy-related issues in Asia Pacific banking. It analyses the link between competition and stability, examining the cases of fourteen Asia Pacific countries between 2003 and 2010, and goes on to discuss whether bank shareholder value is influenced by cost and profit efficiency changes over time. The authors explore the different ways in which banks in Asia-Pacific create liquidity, and whether this is linked to capital generation. This book provides valuable insight for researchers, policy makers and bank managers with an interest in financial rationalization, restructuring and consolidation.

Author : OECD
Publisher : OECD Publishing
ISBN 13 : 9789264120556
Total Pages : 84 pages
Book Rating : 4.56/5 ( download)

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Download or read book Bank Competition and Financial Stability written by OECD and published by OECD Publishing. This book was released on 2011-10-27 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report examines the interplay between banking competition and financial stability, taking into account the experiences in the recent global crisis and the policy response to it. The report has been prepared by members of the Directorate of ...

Author : Mr.Lev Ratnovski
Publisher : International Monetary Fund
ISBN 13 : 1484366174
Total Pages : 20 pages
Book Rating : 4.72/5 ( download)

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Download or read book Competition Policy for Modern Banks written by Mr.Lev Ratnovski and published by International Monetary Fund. This book was released on 2013-05-23 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditional bank competition policy seeks to balance efficiency with incentives to take risk. The main tools are rules guiding entry/exit and consolidation of banks. This paper seeks to refine this view in light of recent changes to financial services provision. Modern banking is largely market-based and contestable. Consequently, banks in advanced economies today have structurally low charter values and high incentives to take risk. In such an environment, traditional policies that seek to affect the degree of competition by focusing on market structure (i.e. concentration) may have limited effect. We argue that bank competition policy should be reoriented to deal with the too-big-to-fail (TBTF) problem. It should also focus on the permissible scope of activities rather than on market structure of banks. And following a crisis, competition policy should facilitate resolution by temporarily allowing higher concentration and government control of banks.

Author : Thorsten Beck
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.02/5 ( download)

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Download or read book Bank Competition And Financial Stability written by Thorsten Beck and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Jacob Bikker
Publisher : Routledge
ISBN 13 : 1136013121
Total Pages : 229 pages
Book Rating : 4.26/5 ( download)

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Download or read book A New Measure of Competition in the Financial Industry written by Jacob Bikker and published by Routledge. This book was released on 2014-08-27 with total page 229 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2008 credit crisis started with the failure of one large bank: Lehman Brothers. Since then the focus of both politicians and regulators has been on stabilising the economy and preventing future financial instability. At this juncture, we are at the last stage of future-proofing the financial sector by raising capital requirements and tightening financial regulation. Now the policy agenda needs to concentrate on transforming the banking sector into an engine for growth. Reviving competition in the banking sector after the state interventions of the past years is a key step in this process. This book introduces and explains a relatively new concept in competition measurement: the performance-conduct-structure (PCS) indicator. The key idea behind this measure is that a firm’s efficiency is more highly rewarded in terms of market share and profit, the stronger competitive pressure is. The book begins by explaining the financial market’s fundamental obstacles to competition presenting a brief survey of the complex relationship between financial stability and competition. The theoretical contributions of Hay and Liu and Boone provide the theoretical underpinning for the PCS indicator, while its application to banking and insurance illustrates its empirical qualities. Finally, this book presents a systematic comparison between the results of this approach and (all) existing methods as applied to 46 countries, over the same sample period. This book presents a comprehensive overview of the knowns and unknowns of financial sector competition for commercial and central bankers, policy-makers, supervisors and academics alike.

Author : Jovi Clemente Dacanay
Publisher : Palgrave Macmillan
ISBN 13 : 9783031595981
Total Pages : 0 pages
Book Rating : 4.8X/5 ( download)

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Download or read book Bank Competition and the Effects on Financial Stability written by Jovi Clemente Dacanay and published by Palgrave Macmillan. This book was released on 2024-07-11 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book aims to form part of the growing literature on the banking system in developing countries in its aim to show the levels of stability in the banking sector of small economies. Any banking system is vulnerable to economic distress but one supported by universal and commercial banks that are efficient, stable, and which enjoy sufficient market power is most likely to withstand economic turmoil. Such is the Philippines’ Universal and Commercial Banking system, which displayed remarkable resilience to unprecedented economic shock. Using data from 2005 to 2019, the five chapters of this work delve into the industrial organization framework of the banking industry in the Philippines, offering researchers, graduate and undergraduate students, and academics the first comprehensive research on bank competition, concentration, efficiency and financial stability in the Philippines.