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Does an increase in competition increase or decrease bank stability? I exploit how the state-specific process of … significantly increases bank stability. This result is robust to the inclusion of additional fixed effects and other influences … loans and increases bank profitability. These findings suggest that competition increases stability as it improves bank …
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analyze the multiplicity and stability of the equilibrium. …
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relevant sectors (CPRSs)), and banking sector stability. We use temperature and precipitation climate data, identify 5 CPRSs … and their quarterly outputs, construct a banking sector stability index, and examine the time-varying linkages of these … variables. Effectively, we assess the response of banking sector stability to sectoral output shocks arising from physical and …
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In this paper, we consider a company that wishes to determine the optimal reinsurance strategy minimising the total expected discounted amount of capital injections needed to prevent the ruin. The company's surplus process is assumed to follow a Brownian motion with drift, and the reinsurance...
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