How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the … impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank … industry specialization. We empirically investigate the impact of interbank competition on bank branch orientation and …

We show that competing firms relax overall competition by lowering future barriers to entry. We illustrate our findings …-period profits. This dampens competition for serving the first-period market. …

We address the question of how lending market competition, measured by the bargaining power of banks, affects the … agency costs of debt finance. It is shown that intensified lending market competition will lead to lower lending rates and … lending market competition will reduce the agency cost of debt financing. Hence, our analysis does not lend support to the …

III rules, thus suggesting a 'race to the top' in capital standards. We study regulatory competition when banks are …

failures. In this model, there is no trade-off between bank competition and financial stability. -- general equilibrium ; bank … competition ; financial stability …

competition and stability in banking. There are two basic channels through which competition may increase instability: by … incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the … implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on …

increase of concentration of new loans. The concentration in affected markets (markets where both merging parties were present …) developed similarly to unaffected markets. Moreover, the interest rate tended to be lower in the affected markets relative to … unaffected markets, but this relationship is weak and not statistically significant. The merger also affected the riskiness of …

This paper studies empirically the relationship between competition and risk taking in banking markets. We exploit an …. The cross-sectional and longitudinal variation in competition in local markets are used to identify the relationship … observed market shares, we use the distance between bank branches and firms to measure the competitiveness of local markets …