Recently, massive bank exits have begun to be observed around the world. What is the effect of such bank behavior on … countries. We find that the impact of bank exits on the market power of other banks is non-linear, shaped like a U …-curve. Moreover, we document that the largest increase in market power is when a divested bank accounts for around 10% of market share …

loan and deposit market. Analyzing likely impact channels, different determinants of bank distress as well as effects from …