competition and a lower risk-free rate raise the screening costs of lending, which can result in pooling Nash equilibria with … credit booms. Such equilibria are characterised by sharp increases in credit supply and deteriorations in average loan … empirical results on the relationship between bank competition and financial stability. The model can be used to define a …

business model, and competition, result in the platform allowing one type of customers to participate in the platform for free … by the participants on the platform as well as have heightened focus on non-price competition when the participation for … concern a free platform side where there is no monetary measure of value. Finally, dynamic competition makes the analysis of …

, a for-profit monopolist, and a competitive credit market. To understand the magnitude of the effects analyzed, we … severe implications for borrower welfare, while despite possible enforcement externalities competition typically delivers … similar borrower welfare to non-profit lending …

We propose a new test to evaluate the impact of horizontal mergers on competition in the banking industry. The test is … and interest rates and consists in comparing the estimated degree of competition in the status- quo, where branching … estimated measures of competition quantifies the impact of the merger. We apply our test to French and Italian mergers …

How can competition enhance bank soundness? Does competition improve soundness via the efficiency channel? Do banks … heterogeneously respond to competition? To answer these questions, we exploit an innovative measure of competition [Boone, J., A New … Way to Measure Competition, EconJnl, Vol. 118, pp. 1245-1261] that captures the reallocation of profits from inefficient …

competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … will intensify if both banks collateralize. Moreover, bank competition is welfare improving if collateralization is rather …

Switching costs are a leading cause of customer lock-in in banking, reducing the extent of competition and increasing … time (a lock-in effect). Thus, the extent of potential competition in Brazilian banking could be severely limited by these …

affect the risk sensitivity of interest rates in the Norwegian credit market. We show that an increase in competition makes …We use unique data on banks' private risk assessments of corporate borrowers to quantify how competition among banks … corporate lending rates less sensitive to banks' own assessment of borrower risk and this is more pronounced in market segments …

This paper studies the links between competition in the lending market and spreads of bank loans in Brazil. Evidence …