We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the … ask two questions: i) how does capital regulation affect (endogenous) entry; and ii) how do (exogenous) changes in the …

deposit customers. In the past, bank regulation has often been blamed for undermining competition and the functioning of … tries to shed some light on the historical development and current state of bank regulation in Germany. In so doing, it … tries to embed the analysis of bank regulation in a more general industrial organization framework. For every regulated …

III rules, thus suggesting a "race to the top" in capital standards. We study regulatory competition when banks are … coordinated ones when governments care equally about bank profits, taxpayers, and consumers. …

Minimum capital requirement regulation forces banks to refund a substantial amount of their investments with equity … higher loan interest rates, then borrowers are likely to become more risky, which may destabilize the lending bank. This … paper argues that, in addition to the buffer and cost effect of capital regulation, there is a strategic effect. A binding …

III rules, thus suggesting a 'race to the top' in capital standards. We study regulatory competition when banks are … coordinated ones when governments care equally about bank profits, taxpayers, and consumers. …

Using bank-level data from 38 countries, this paper examines how a range of stability-oriented regulatory policies for … banking are related to competition outcomes. Based on policy indicators constructed at the OECD for eight areas of prudential … banking regulation, the results do not support the view that there is a general trade-off between stability …