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Are competitive banking systems more stable?

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Are competitive banking systems more stable? / Schaeck, Klaus; Cihak, Martin; Wolfe, Simon.

In: Journal of Money, Credit and Banking, Vol. 41, No. 4, 01.06.2009, p. 711-734.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Schaeck, K, Cihak, M & Wolfe, S 2009, 'Are competitive banking systems more stable?', Journal of Money, Credit and Banking, vol. 41, no. 4, pp. 711-734. https://doi.org/10.1111/jmcb.2009.41.issue-4

APA

Schaeck, K., Cihak, M., & Wolfe, S. (2009). Are competitive banking systems more stable? Journal of Money, Credit and Banking, 41(4), 711-734. https://doi.org/10.1111/jmcb.2009.41.issue-4

Vancouver

Schaeck K, Cihak M, Wolfe S. Are competitive banking systems more stable? Journal of Money, Credit and Banking. 2009 Jun 1;41(4):711-734. https://doi.org/10.1111/jmcb.2009.41.issue-4

Author

Schaeck, Klaus ; Cihak, Martin ; Wolfe, Simon. / Are competitive banking systems more stable?. In: Journal of Money, Credit and Banking. 2009 ; Vol. 41, No. 4. pp. 711-734.

Bibtex

@article{0c1dcf3d10584621abb84515da8ffa7a,
title = "Are competitive banking systems more stable?",
abstract = "Using the Panzar and Rosse H-statistic as a measure of competition in 45 countries, we find that more competitive banking systems are less prone to experience a systemic crisis and exhibit increased time to crisis. This result holds even when we control for banking system concentration, which is associated with higher probability of a crisis and shorter time to crisis. Our results indicate that competition and concentration capture different characteristics of banking systems, meaning that concentration is an inappropriate proxy for competition. The findings suggest that policies promoting competition among banks, if well executed, have the potential to improve systemic stability.",
keywords = "systemic risk, banking competition, market structure, regulation",
author = "Klaus Schaeck and Martin Cihak and Simon Wolfe",
year = "2009",
month = jun,
day = "1",
doi = "10.1111/jmcb.2009.41.issue-4",
language = "English",
volume = "41",
pages = "711--734",
journal = "Journal of Money, Credit and Banking",
issn = "0022-2879",
publisher = "Wiley-Blackwell",
number = "4",

}

RIS

TY - JOUR

T1 - Are competitive banking systems more stable?

AU - Schaeck, Klaus

AU - Cihak, Martin

AU - Wolfe, Simon

PY - 2009/6/1

Y1 - 2009/6/1

N2 - Using the Panzar and Rosse H-statistic as a measure of competition in 45 countries, we find that more competitive banking systems are less prone to experience a systemic crisis and exhibit increased time to crisis. This result holds even when we control for banking system concentration, which is associated with higher probability of a crisis and shorter time to crisis. Our results indicate that competition and concentration capture different characteristics of banking systems, meaning that concentration is an inappropriate proxy for competition. The findings suggest that policies promoting competition among banks, if well executed, have the potential to improve systemic stability.

AB - Using the Panzar and Rosse H-statistic as a measure of competition in 45 countries, we find that more competitive banking systems are less prone to experience a systemic crisis and exhibit increased time to crisis. This result holds even when we control for banking system concentration, which is associated with higher probability of a crisis and shorter time to crisis. Our results indicate that competition and concentration capture different characteristics of banking systems, meaning that concentration is an inappropriate proxy for competition. The findings suggest that policies promoting competition among banks, if well executed, have the potential to improve systemic stability.

KW - systemic risk

KW - banking competition

KW - market structure

KW - regulation

U2 - 10.1111/jmcb.2009.41.issue-4

DO - 10.1111/jmcb.2009.41.issue-4

M3 - Journal article

VL - 41

SP - 711

EP - 734

JO - Journal of Money, Credit and Banking

JF - Journal of Money, Credit and Banking

SN - 0022-2879

IS - 4

ER -