take excessive risks: As competition intensifies and margins decline, banks face more-binding threats of failure, to which …, destabilizing effect of lower margins outweighs the disciplining effect of competition; moreover, a substantial rise in competition … reduces banks’ incentive to build precautionary capital buffers. A key implication is that the effects of competition on risk …

Greater competition in banking is traditionally believed to aggravate banks' incentive to take excessive risks. This … paper presents a model in which, contrary to the traditional view, an increase in competition can cause banks to behave more … prudently: As competition intensifies and margins decline, banks face more-binding threats of failure, to which they may respond …

Less-intense competition for deposits, by mitigating banks' incentive to take excessive risks, is traditionally … uncompetitive loan markets, less-fierce competition for deposits (i.e., lower deposit rates) leads to lower loan rates and, thus … less eager to risk-shift; this softens competition for risky loans, leading to higher loan rates and, ultimately, riskier …

This paper shows that bank competition has an intrinsically ambiguous effect on capital accumulation and economic … evidence gathered from recent empirical studies of how bank competition affects the real economy. Our results were obtained by … prospective entrepreneur is of low credit quality and where screening would therefore be especially beneficial, less competition …

In this paper we show that bank competition has an intrinsically ambiguous impact on capital accumulation. We further … effects of bank competition on economic growth. We obtain them developing a dynamic, general equilibrium model of capital … market uncertainty is high (low), less (more) competition leads to higher capital accumulation …

This paper shows that bank competition has an intrinsically ambiguous effect on capital accumulation and economic … evidence gathered from recent empirical studies of how bank competition affects the real economy. Our results were obtained by … prospective entrepreneur is of low credit quality and where screening would therefore be especially beneficial, less competition …