. Although competition reduces firm revenues and benefits consumers initially, shrouding helps banks offset the vast majority of …

Bank competition can induce excessive risk taking due to risk shifting. This paper tests this hypothesis using micro …-level U.S. mortgage data by exploiting the exogenous variation in local house price volatility. The paper finds that, in … response to high expected house price volatility, banks in U.S. counties with a competitive mortgage market lowered lending …

We study how deposit competition affects a bank’s decision to securitize mortgages. Exploiting the state …-specific removal of deposit market caps across the US as a source of competition, we find a 7.1 percentage point increase in the … probability that banks securitize mortgage loans. This result is driven by an 11 basis point increase in deposit costs and …

We model mortgage refinancing as a bargaining game involving the borrowing household, the incumbent lender, and an … outside bank. In equilibrium, the borrower's ability to refinance depends both on the competitiveness of the local banking … correlated with the number of local branches and negatively correlated with local mortgage market concentration. Moreover …