The Stability-Concentration Relationship in the Brazilian Banking System

Benjamin Tabak, Solange Guerra, Eduardo Lima () and Eui Chang

No 145, Working Papers Series from Central Bank of Brazil, Research Department

Abstract: In this article the relation between non-performing loans (NPL) of the Brazilian banking system and macroeconomic factors, systemic risk and banking concentration is empirically tested. While evaluating this relation, we use a dynamic specification with fixed effects, using a panel data approach. The empirical results indicate that the banking concentration has a statistically significant impact on NPL, suggesting that more concentrated banking systems may improve financial stability. These results are important for the design of banking regulation policies.

Date: 2007-10
New Economics Papers: this item is included in nep-ban, nep-com, nep-reg and nep-rmg
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Citations: View citations in EconPapers (7)

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Journal Article: The stability-concentration relationship in the Brazilian banking system (2008)
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