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"Under the traditional "competition-fragility" view, more bank competition erodes market power, decreases profit margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative "competition-stability" view, more market power in the loan market may result...
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"Under the traditional "competition-fragility" view, more bank competition erodes market power, decreases profit margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative "competition-stability" view, more market power in the loan market may result...
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"We offer and test two competing hypotheses for the consolidation trend in banking using U.S. banking industry data …. The results may shed light as well on some of the research and policy issues related to community banking, and on the …
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