This study investigates the bank competition-stability nexus using a unique regulatory dataset provided by the Deutsche … competition, contestability and market power, each corresponding to a different contextual level of a bank's competitive … theoretical properties of the indicators for market power and competition. Using the Lerner Index as a proxy for bank …

sovereign debt exposures and the implications of sovereign exposures for bank risk. Our main findings are as follows. First … impact of sovereign bond holdings on bank risk. This result could indicate the widespread absence of marking-to-market for …

geographical regions measured by the Herfindahl Index. To explore this issue, we use a unique data set of the individual bank loan …

address the following questions. How are macroeconomic shocks transmitted to bank risk and other banking variables? What are … the sources of bank heterogeneity, and what explains differences in individual banks' responses to macroeconomic shocks …? Our paper has two main findings: (i) Average bank risk declines, and average bank lending increases following expansionary …

network connections of the banks. The latter are in our application observed interbank exposures among German bank holding …-many-to-fail mechanics such that bank distress is less likely if many peers already experienced distress. …

health. Neglecting these differences confuses inefficiency with heterogeneity while sub-sample estimation prohibits … multiple technology regimes and group membership probabilities. The latter are conditioned on six bank traits of German banks … specific cost parameters to measure competition with Lerner indices. Large, national universal banks and the smallest, most …