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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...
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such cooperative practices. There are two adjacent markets with one savings or cooperative bank being focused on each one … and one private commercial bank serving both. We find that abolishing regional demarcation indeed increases total loan … shields the private commercial bank from aggressive competition by these banks. …
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Given the marked reduction in the number of banks in Germany during recent years, the study estimates competitive behavior in the German banking system by applying an empirical method developed by Panzar and Rosse (1987). By estimating the banks' reduced form revenue functions, the sums of their...
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rents already. Thus our results suggest that in the bank-dominated financial system of Germany, in which banks intensely …
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multiple technology regimes and group membership probabilities. The latter are conditioned on six bank traits of German banks …. Wir ermitteln die Wahrscheinlichkeit der Gruppenzugehörigkeit (GZW) je Bank in Abhängigkeit von sechs individuellen …
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Refinanzierungskosten? Gibt es in Deutschland mehr Kreditausfälle, oder schätzen die deutschen Banken die Risiken realistischer ein? …
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