This paper addresses the topic regarding the desirability of competition in banking industry. In a model where banks … compete on both deposit and loan markets and where banks can use monitoring technology to control entrepreneurs' behavior, we … investigate three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks …

), minimum capital requirements are, however, likely to have similar effects, since banks will pass the costs of this regulation … while deposit rate ceilings may result in an inefficiently high number of banks. We show that, depending on the opportunity …

development of regional and double-purpose banks, i.e. savings and cooperative banks, mainly account for the differences in the … degree of centralisation. Whereas no such bank exists in the UK any longer and real savings banks in Spain have almost … disappeared, two decentralised banking groups with more than 1,400 savings and cooperative banks dominate business finance in …

have predicted a decline in the importance of the banking sector as banks struggle to compete with other providers of … capital requirements the bank sector may see bank competition reduced as the sector becomes dominated by fewer banks. Parallel … with this development depositors may stop using banks in favor of an outside option that can be interpreted as banks which …

have predicted a decline in the importance of the banking sector as banks struggle to compete with other providers of … capital requirements the bank sector may see bank competition reduced as the sector becomes dominated by fewer banks. Parallel … with this development depositors may stop using banks in favor of an outside option that can be interpreted as banks which …

three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks' stability …This paper addresses the desirability of competition in banking industry. In a model where banks compete on both … deposit and loan markets and where banks can use monitoring technology to control entrepreneurs' behavior, we investigate …

We investigate, in a model of perfectly competitive banks and a lower bound on the deposit rate that these banks may … preventing banks from investing in risky assets which are, from the point of view of society, inefficient. We interpret this as … the banks. …