Bank Competition and Financial Stability : Friends or Foes?
Theory makes ambiguous predictions about the relationship between market structure and competitiveness of the banking system and banking sector stability. Empirical studies focusing on individual countries provide similarly ambiguous results, whil...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/06/9605096/bank-competition-financial-stability-friends-or-foes http://hdl.handle.net/10986/6863 |
| id |
okr-10986-6863 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCE ARBITRAGE BALANCE SHEET BANK ACQUISITIONS BANK ACTIVITY BANK ASSET BANK CAPITALIZATION BANK COMPETITION BANK CONSOLIDATION BANK FAILURE BANK FAILURE RESOLUTION BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK HOLDING COMPANIES BANK LOANS BANK MERGERS BANK OF ENGLAND BANK REGULATION BANK RISK BANK SUPERVISORS BANKING CRISES BANKING CRISIS BANKING DISTRESS BANKING INDUSTRY BANKING REGULATION BANKING RELATIONSHIPS BANKING SECTOR BANKING STABILITY BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BARRIER BARRIER TO ENTRY BARRIERS TO ENTRY CAPITAL CONTROLS CAPITAL MARKET CAPITAL MARKETS CAPITAL RATIOS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKETS CONSOLIDATED SUPERVISION CONSOLIDATION CREDIT DECISIONS CREDIT INFORMATION CREDIT MARKET CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT RISK CREDITORS CROSS-BORDER BANKING DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE SCHEMES DEPOSIT INTEREST RATE DEPOSIT INTEREST RATES DEPOSITOR DEPOSITORS DEPOSITS DEREGULATION DEVELOPING COUNTRIES DIVERSIFICATION DIVERSIFICATION BENEFITS DOMESTIC BANK EARNINGS ECONOMIC GROWTH ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENTRY BARRIERS EQUILIBRIUM CREDIT EQUILIBRIUM CREDIT RATIONING EXCHANGE RATE EXCHANGE RATE REGIMES EXCHANGE RATES EXPOSURES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE SYSTEM FINANCIAL CONGLOMERATES FINANCIAL CRISES FINANCIAL DEEPENING FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PRODUCTS FINANCIAL RISK FINANCIAL SAFETY FINANCIAL SAFETY NET FINANCIAL SAFETY NETS FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN BANK FOREIGN BANKS FOREIGN ENTRY GOVERNMENT OWNERSHIP GOVERNMENT POLICY GROWTH RATE ILLIQUIDITY INEQUALITY INFLATION INFLATION RATE INFORMATION SHARING INITIAL INVESTMENT INPUT PRICES INSTITUTIONAL ENVIRONMENT INSURANCE INSURANCE DESIGN INSURERS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL BANKS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL FINANCE INTERNATIONAL RESERVES INTERSTATE BANKING INVESTMENT BANKING LENDER LENDER OF LAST RESORT LENDERS LIBERAL ENTRY LOAN LOAN CONTRACTS LOAN DEFAULT LOAN GUARANTEES LOAN LOSS PROVISIONS MARGINAL COST MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET STRUCTURES MICROFINANCE MONETARY POLICY MONOPOLY MORAL HAZARD MORTGAGE MORTGAGE MARKET NEW ENTRANTS NEW MARKETS NEW PRODUCTS NOMINAL INTEREST RATE OUTPUT OUTREACH PAYMENT SERVICES PAYMENT SYSTEM PENSION PENSION FUND PERFORMANCE MEASURES POLITICAL ECONOMY PORTFOLIO PORTFOLIOS POVERTY ALLEVIATION PRIVATIZATION PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC CREDIT PUBLIC POLICY REAL ESTATE REGULATORS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY POLICIES REGULATORY REQUIREMENTS REPUTATION RETURN ON ASSETS RISK DIVERSIFICATION RISK MANAGEMENT RISK OF BANK FAILURE RISK PREMIUMS RISK SHARING RISK TAKING SAFETY NET SAVINGS SECURITIES SETTLEMENT SYSTEMS SMALL BANKS SUNSET CLAUSES SUPERVISORY AGENCY SUPERVISORY FRAMEWORK SYSTEMIC BANKING CRISES SYSTEMIC BANKING DISTRESS SYSTEMIC RISK TAXATION TRANSITION COUNTRIES VOLATILITY |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ARBITRAGE BALANCE SHEET BANK ACQUISITIONS BANK ACTIVITY BANK ASSET BANK CAPITALIZATION BANK COMPETITION BANK CONSOLIDATION BANK FAILURE BANK FAILURE RESOLUTION BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK HOLDING COMPANIES BANK LOANS BANK MERGERS BANK OF ENGLAND BANK REGULATION BANK RISK BANK SUPERVISORS BANKING CRISES BANKING CRISIS BANKING DISTRESS BANKING INDUSTRY BANKING REGULATION BANKING RELATIONSHIPS BANKING SECTOR BANKING STABILITY BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BARRIER BARRIER TO ENTRY BARRIERS TO ENTRY CAPITAL CONTROLS CAPITAL MARKET CAPITAL MARKETS CAPITAL RATIOS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKETS CONSOLIDATED SUPERVISION CONSOLIDATION CREDIT DECISIONS CREDIT INFORMATION CREDIT MARKET CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT RISK CREDITORS CROSS-BORDER BANKING DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE SCHEMES DEPOSIT INTEREST RATE DEPOSIT INTEREST RATES DEPOSITOR DEPOSITORS DEPOSITS DEREGULATION DEVELOPING COUNTRIES DIVERSIFICATION DIVERSIFICATION BENEFITS DOMESTIC BANK EARNINGS ECONOMIC GROWTH ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENTRY BARRIERS EQUILIBRIUM CREDIT EQUILIBRIUM CREDIT RATIONING EXCHANGE RATE EXCHANGE RATE REGIMES EXCHANGE RATES EXPOSURES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE SYSTEM FINANCIAL CONGLOMERATES FINANCIAL CRISES FINANCIAL DEEPENING FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PRODUCTS FINANCIAL RISK FINANCIAL SAFETY FINANCIAL SAFETY NET FINANCIAL SAFETY NETS FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN BANK FOREIGN BANKS FOREIGN ENTRY GOVERNMENT OWNERSHIP GOVERNMENT POLICY GROWTH RATE ILLIQUIDITY INEQUALITY INFLATION INFLATION RATE INFORMATION SHARING INITIAL INVESTMENT INPUT PRICES INSTITUTIONAL ENVIRONMENT INSURANCE INSURANCE DESIGN INSURERS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL BANKS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL FINANCE INTERNATIONAL RESERVES INTERSTATE BANKING INVESTMENT BANKING LENDER LENDER OF LAST RESORT LENDERS LIBERAL ENTRY LOAN LOAN CONTRACTS LOAN DEFAULT LOAN GUARANTEES LOAN LOSS PROVISIONS MARGINAL COST MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET STRUCTURES MICROFINANCE MONETARY POLICY MONOPOLY MORAL HAZARD MORTGAGE MORTGAGE MARKET NEW ENTRANTS NEW MARKETS NEW PRODUCTS NOMINAL INTEREST RATE OUTPUT OUTREACH PAYMENT SERVICES PAYMENT SYSTEM PENSION PENSION FUND PERFORMANCE MEASURES POLITICAL ECONOMY PORTFOLIO PORTFOLIOS POVERTY ALLEVIATION PRIVATIZATION PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC CREDIT PUBLIC POLICY REAL ESTATE REGULATORS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY POLICIES REGULATORY REQUIREMENTS REPUTATION RETURN ON ASSETS RISK DIVERSIFICATION RISK MANAGEMENT RISK OF BANK FAILURE RISK PREMIUMS RISK SHARING RISK TAKING SAFETY NET SAVINGS SECURITIES SETTLEMENT SYSTEMS SMALL BANKS SUNSET CLAUSES SUPERVISORY AGENCY SUPERVISORY FRAMEWORK SYSTEMIC BANKING CRISES SYSTEMIC BANKING DISTRESS SYSTEMIC RISK TAXATION TRANSITION COUNTRIES VOLATILITY Beck, Thorsten Bank Competition and Financial Stability : Friends or Foes? |
| relation |
Policy Research Working Paper No. 4656 |
| description |
Theory makes ambiguous predictions about
the relationship between market structure and
competitiveness of the banking system and banking sector
stability. Empirical studies focusing on individual
countries provide similarly ambiguous results, while
cross-country studies point mostly to a positive
relationship between competition and stability in the
banking system. Where liberalization and unfettered
competition have resulted in fragility, this has been mostly
the consequence of regulatory and supervisory failures. The
advantages of competition for an efficient and inclusive
financial system are strong, and regulatory and supervisory
policies should focus on an incentive-compatible environment
for banking rather than try to fine-tune market structure or
the degree of competition. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Beck, Thorsten |
| author_facet |
Beck, Thorsten |
| author_sort |
Beck, Thorsten |
| title |
Bank Competition and Financial Stability : Friends or Foes? |
| title_short |
Bank Competition and Financial Stability : Friends or Foes? |
| title_full |
Bank Competition and Financial Stability : Friends or Foes? |
| title_fullStr |
Bank Competition and Financial Stability : Friends or Foes? |
| title_full_unstemmed |
Bank Competition and Financial Stability : Friends or Foes? |
| title_sort |
bank competition and financial stability : friends or foes? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/06/9605096/bank-competition-financial-stability-friends-or-foes http://hdl.handle.net/10986/6863 |
| _version_ |
1764401007178022912 |
| spelling |
okr-10986-68632021-04-23T14:02:32Z Bank Competition and Financial Stability : Friends or Foes? Beck, Thorsten ACCESS TO CREDIT ACCESS TO FINANCE ARBITRAGE BALANCE SHEET BANK ACQUISITIONS BANK ACTIVITY BANK ASSET BANK CAPITALIZATION BANK COMPETITION BANK CONSOLIDATION BANK FAILURE BANK FAILURE RESOLUTION BANK FAILURES BANK FOR INTERNATIONAL SETTLEMENTS BANK HOLDING COMPANIES BANK LOANS BANK MERGERS BANK OF ENGLAND BANK REGULATION BANK RISK BANK SUPERVISORS BANKING CRISES BANKING CRISIS BANKING DISTRESS BANKING INDUSTRY BANKING REGULATION BANKING RELATIONSHIPS BANKING SECTOR BANKING STABILITY BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BARRIER BARRIER TO ENTRY BARRIERS TO ENTRY CAPITAL CONTROLS CAPITAL MARKET CAPITAL MARKETS CAPITAL RATIOS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMPETITIVE MARKETS CONSOLIDATED SUPERVISION CONSOLIDATION CREDIT DECISIONS CREDIT INFORMATION CREDIT MARKET CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT RISK CREDITORS CROSS-BORDER BANKING DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE SCHEMES DEPOSIT INTEREST RATE DEPOSIT INTEREST RATES DEPOSITOR DEPOSITORS DEPOSITS DEREGULATION DEVELOPING COUNTRIES DIVERSIFICATION DIVERSIFICATION BENEFITS DOMESTIC BANK EARNINGS ECONOMIC GROWTH ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENTRY BARRIERS EQUILIBRIUM CREDIT EQUILIBRIUM CREDIT RATIONING EXCHANGE RATE EXCHANGE RATE REGIMES EXCHANGE RATES EXPOSURES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE SYSTEM FINANCIAL CONGLOMERATES FINANCIAL CRISES FINANCIAL DEEPENING FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PRODUCTS FINANCIAL RISK FINANCIAL SAFETY FINANCIAL SAFETY NET FINANCIAL SAFETY NETS FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN BANK FOREIGN BANKS FOREIGN ENTRY GOVERNMENT OWNERSHIP GOVERNMENT POLICY GROWTH RATE ILLIQUIDITY INEQUALITY INFLATION INFLATION RATE INFORMATION SHARING INITIAL INVESTMENT INPUT PRICES INSTITUTIONAL ENVIRONMENT INSURANCE INSURANCE DESIGN INSURERS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL BANKS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL FINANCE INTERNATIONAL RESERVES INTERSTATE BANKING INVESTMENT BANKING LENDER LENDER OF LAST RESORT LENDERS LIBERAL ENTRY LOAN LOAN CONTRACTS LOAN DEFAULT LOAN GUARANTEES LOAN LOSS PROVISIONS MARGINAL COST MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MARKET STRUCTURE MARKET STRUCTURES MICROFINANCE MONETARY POLICY MONOPOLY MORAL HAZARD MORTGAGE MORTGAGE MARKET NEW ENTRANTS NEW MARKETS NEW PRODUCTS NOMINAL INTEREST RATE OUTPUT OUTREACH PAYMENT SERVICES PAYMENT SYSTEM PENSION PENSION FUND PERFORMANCE MEASURES POLITICAL ECONOMY PORTFOLIO PORTFOLIOS POVERTY ALLEVIATION PRIVATIZATION PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC CREDIT PUBLIC POLICY REAL ESTATE REGULATORS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY POLICIES REGULATORY REQUIREMENTS REPUTATION RETURN ON ASSETS RISK DIVERSIFICATION RISK MANAGEMENT RISK OF BANK FAILURE RISK PREMIUMS RISK SHARING RISK TAKING SAFETY NET SAVINGS SECURITIES SETTLEMENT SYSTEMS SMALL BANKS SUNSET CLAUSES SUPERVISORY AGENCY SUPERVISORY FRAMEWORK SYSTEMIC BANKING CRISES SYSTEMIC BANKING DISTRESS SYSTEMIC RISK TAXATION TRANSITION COUNTRIES VOLATILITY Theory makes ambiguous predictions about the relationship between market structure and competitiveness of the banking system and banking sector stability. Empirical studies focusing on individual countries provide similarly ambiguous results, while cross-country studies point mostly to a positive relationship between competition and stability in the banking system. Where liberalization and unfettered competition have resulted in fragility, this has been mostly the consequence of regulatory and supervisory failures. The advantages of competition for an efficient and inclusive financial system are strong, and regulatory and supervisory policies should focus on an incentive-compatible environment for banking rather than try to fine-tune market structure or the degree of competition. 2012-06-01T15:52:36Z 2012-06-01T15:52:36Z 2008-06 http://documents.worldbank.org/curated/en/2008/06/9605096/bank-competition-financial-stability-friends-or-foes http://hdl.handle.net/10986/6863 English Policy Research Working Paper No. 4656 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |