This paper investigates the competition-stability puzzle in the banking market and provides new consolidating evidence at the bank level. Using bank-level data from 35 emerging economies during the period of 2000-2014, we investigate the impact of market power of banks on their risk-taking...

We investigate the impact of market power of banks on their risk-taking, using bank-level data from 35 emerging economies during the period of 2000-2014. We set up a semiparametric model of the market power-bank risk nexus, and conduct estimation applying the Bayesian inference, which provides...

A good description of the dynamics of interest rates is crucial to price derivatives and to hedge corresponding risk. Interest rate modelling in an unstable macroeconomic context motivates one factor models with time varying parameters. In this paper, the local parameter approach is introduced...