I study the relationship between competition in the banking sector and financial fragility. I identify a new “too big to save” channel through which increased competition amplifies fragility in the banking system. In equilibrium, a more competitive banking system will be larger because more...

After the last set of business scandals and financial busts, many powerful interests and many influential people are asking questions about doing more with less, from governments to multinational corporations; they are seeking this realignment in hopes of regaining their balance. Doing More with...