Martinez-Miera, David; Repullo, Rafael - 2008
know the e�ect on aggregate lending,
but to establish the e�ect on the probability of bank failure we need to know the form …
denote the (noncooperative) franchise value of a bank when there are n banks in the market, and let L1
denote the lending of …
DOES COMPETITION REDUCE
THE RISK OF BANK FAILURE?
David Martinez-Miera and Rafael Repullo …