Banking sector concentration, competition and financial stability: the case of the Baltic countries
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONMetadatos
Título
Banking sector concentration, competition and financial stability: the case of the Baltic countriesFecha de publicación
2019Editor
Taylor & FrancisISSN
1463-1377; 1465-3958Cita bibliográfica
CUESTAS, Juan Carlos; LUCOTTE, Yannick; REIGL, Nicolas. Banking sector concentration, competition and financial stability: the case of the Baltic countries. Post-Communist Economies, 2019, p. 1-35.Tipo de documento
info:eu-repo/semantics/articleVersión de la editorial
https://www.tandfonline.com/doi/abs/10.1080/14631377.2019.1640981Versión
info:eu-repo/semantics/submittedVersionPalabras clave / Materias
Resumen
This paper empirically assesses the potential nonlinear relationship between competition and bank risk for a sample of commercial banks in the Baltic countries over the period 2000–2014. Competition is measured by two ... [+]
This paper empirically assesses the potential nonlinear relationship between competition and bank risk for a sample of commercial banks in the Baltic countries over the period 2000–2014. Competition is measured by two alternative indexes, the Lerner index and the market share, while we consider the Z-score and loan loss reserves as proxies for bank risk. In line with the theoretical predictions, we find an inverse U-shaped relationship between competition and financial stability. This then means that above a certain threshold, the lack of competition is likely to exacerbate the individual risk-taking behaviour of banks, and could be detrimental to the stability of the banking sector in the Baltic countries. The threshold is around 0.60 for the Lerner index, and close to 50% for market share in terms of assets. The policy implications are that the existence of such a threshold suggests that the future evolution of the structure of the banking industry in these countries is of critical importance. Specifically, this implies that policy-makers should place greater emphasis on mergers and acquisitions to avoid any significant increase of banking sector concentration. [-]
Publicado en
Post-Communist Economies, 2019, p. 1-35Proyecto de investigación
ECO2017-85503-R ; ECO2017-83255-C3-3-PDerechos de acceso
This is an original manuscript / preprint of an article published by Taylor & Francis in POST-COMMUNIST ECONOMIES on 2019, available online: https://doi.org/10.1080/14631377.2019.1640981.”
http://rightsstatements.org/vocab/InC/1.0/
info:eu-repo/semantics/openAccess
http://rightsstatements.org/vocab/InC/1.0/
info:eu-repo/semantics/openAccess
Aparece en las colecciones
- IEI_Articles [116]
- ECO_Articles [693]