between states. Exploiting the removal of interstate banking restrictions to construct time-varying instrumental variables at … the state-pair level, we find that bilateral banking integration increases output co-movement between states. The effect …

We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … requirements can lead to more entry into banking, essentially by reducing the competitive strength of lower quality banks. We also ….g. one country that opens up its banking system for competitors but not vice versa. …