A common assumption in the academic literature is that franchise value plays a key role in limiting bank risk …-taking. As market power is the primary source of franchise value, reduced competition in banking markets has been seen as … of market concentration do not affect bank risk-taking. However, we find a negative relationship between market power …

loan applicants are required to pay to reach the bank of their interest shrinks with respect to the degree of competition … theoretical model of spatial competition that considers the differential information between lenders and loan applicants to … and how this, in turn, affects the level of credit risk in the economy. Our findings reveal that enhanced competition …

largest U.S. banks had their senior unsecured bonds ranked pari-passu with bank deposits under the market conditions from 2006 … to 2015. Since 1994 senior bank bonds are subordinated to bank deposits in the event of liquidation. And during the … financial crises of 2008-2009 and 2011, the maximum 5-year bank credit spread among the four largest banks was over 400 basis …

competition? Has it led to more or less credit risk? In all or some countries? In this study, we examine the evolution of … competition (through market power and concentration) and credit risk (through non-performing loans) in 2005-2017 across all euro … core and periphery with respect to competition and credit risk, especially post-crisis, in spite of some partial …

This paper investigates the impact of bank competition in Sub-Saharan Africa on bank non-performing loans, a measure of …-linear or U-shaped relationship between bank competition (measured by the Lerner Index) and credit risk. In other words …, increased bank competition has the potential to lower credit risk via efficiency gains (lower credit cost, operational gains …