firms that are facing solvency shocks. We apply their framework to banking and extend the framework to admit the analysis of … problems associated with transitory liquidity outflows, even absent any change in a bank's value. Our premise is that the scope …

This article investigates the nexus of competition and stability in European banking. It analyzes the European legal … framework for competition policy in banking and several cases that pertain to anti-cartel policy, merger policy, and state …-aid control. It discusses whether and how competition policy should be amended in order to preserve the stability of the banking …

large bank may be in an advantageous situation in that most of his payments will be effected in that bank’s internal payment … system. A smaller bank will overinvest in the system in order to improve its relative competitive position. Because system … improvement would only weaken the large bank’s superior position, it will not have a strong incentive to improve the system. Since …