This study investigates the bank competition-stability nexus using a unique regulatory dataset provided by the Deutsche …-varying characteristics of banks which are likely to influence the competition-risk taking channel. Third, we include different measures of … competition, contestability and market power, each corresponding to a different contextual level of a bank's competitive …

competition. Here, we employ a novel approach to account for IRS that are both unexpected and effective for a bank’s business … theory that monopolistic firms undersupply the market when utilizing their high pricing power in the bank competition …We study the effects of interest rate shocks (IRS) on banks’ liquidity creation. A unique supervisory data set from the …

-through in monopolistic banking markets. Our data,covering all 1,555 small and medium sized banks in Germany, provides a clear … market rates from their depositors. Because high market-power banks inour sample are relatively more profitable, they seem to …

regulatory competition when banks are heterogeneous and give loans to firms that produce output in an integrated market. In this … setting capital requirements change the pool quality of banks in each country and inflict negative externalities on … bank profits, taxpayers, and consumers. …