, 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 …

We present empirical evidence documenting how increased competition can affect the fragility of banks using U … organizations (RBOs) increased their share of CRE loans as competition from large banking organizations (LBOs) increased. The paper … presents evidence showing how competition increases not just individual bank fragility, but the stability of the banking sector …