) leading to efficiency gains in the banking market. Our findings suggest that the more frequent bank failures occurring in a … removing barriers to bank entry on bank competition and economic growth. As governments were not concerned about systemic … stability in this period, we are able to isolate the effects of bank competition from those of state implicit guarantees. We …

banks with relatively higher-valued investment opportunities achieve less of their potential market value, while banks with …-practice value of a firmś investment opportunities and the magnitude of a firmś systematic failure to achieve its best …-practice market value - a gauge of the magnitude of agency costs. These frontiers are estimated from the performance of all firms in …