A note on efficiency and solvency in banking
Banking competition induces an efficient outcome but may also induce risk-taking behaviour that reduces solvency. This study examines the relationship between efficiency and solvency in banking at the empirical level. The empirical findings support that greater efficiency with respect to a risk-return frontier leads to a greater solvency level, but solvency is not related to efficiency. So, an increase in banking competition generates both more efficiency and solvency.
Year of publication: |
2004
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Authors: | Reboredo, J. C. |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 11.2004, 3, p. 183-185
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Publisher: |
Taylor & Francis Journals |
Saved in:
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