competition and stability in banking. There are two basic channels through which competition may increase instability: by … incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the … implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on …

-out guarantee. The reason is that the prospect of a bail-out induces the rotected bank to expand, thereby intensifying competition … in the deposit market and depressing other banks' margins. In contrast, the effects on the protected bank's risk taking …

"Does too much competition in banking hurt society? What policies can best protect and stabilize banking without … competition and what should be done about it. Competition and Stability in Banking addresses the critical relationships between … competition, regulation, and stability, and the implications of coordinating banking regulations with competition policies. Xavier …