of this paper is that when the efficient pricing hypothesis is imposed in the form of an average cost pricing rule, banks … will maximally differentiate their product. However, high quality-type banks benefit from increased market power, while low … quality-type banks could benefit from either increased market share, or increased market power …

This paper evaluates the incentives that banks have to herd. It includes a complete literature review of papers from … the last fifteen years, and a model of several banks and infinite time periods. The literature review looks at recent … policy that reduces the costs of over-investment increases the incentives of banks to herd …

. Poor lending decisions allowed banks to transfer risk to the fund, resulting in their capturing returns on performing loans …, activity, and leverage were collected on the largest seven national banks, which control 87% of the capital in the banking …

banking system size and structure - in particular, the presence of big domestically-owned banks. It recommends that the … fiscal consolidation effort, and that they introduce a set of prudential measures for systemically important banks that are …

curtailed credit supply, particularly at less-well capitalized banks. Second, such negative impact was larger for countries … significantly smaller for foreign-owned banks, suggesting that opening up to foreign investors may be an effective way to partly … shield the domestic banking sector from negative shocks. Overall, CAR enforcement — by inducing banks to reduce their lending …

Systemically Important Banks (G-SIBs) translate into lower spreads and a funding cost advantage for those G-SIBs. We analyze …