This study investigates whether regulations have an independent effect on bank risk-taking or whether their effect is channeled through the market power possessed by banks. Given a well-established set of theoretical priors, the regulations considered are capital requirements, restrictions on...

This study investigates the relationship between regulations, competition, and risk-taking in the Central and Eastern European banking sectors between 1994 and 2005. We build an empirical model that employs a non-structural measure of competition, various proxies for regulations and both static...