We assess whether during the recent financial crisis banking systems in countries with more stringent prudential … banking regulation have proved more stable. We find indicators of regulatory strength to be relatively well correlated with … value destruction in the banking sector or by the fiscal cost of financial sector rescue. …

This paper examines how a range of stability-oriented regulatory policies for banking and insurance are related to … selected stability and competition outcomes in these sectors. Based on survey information on financial market regulation …, policy indicators for eight areas of prudential banking regulation are constructed, in addition to indicators for the …

banking, financial markets and regulation. …

stability and explores market, regulatory and institutional features that can explain this variation. We show that an increase …

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 …