Market structure, financial intermediation and riskiness of banks:Evidence from Asia Pacific

Wahyoe Soedarmono and Amine Tarazi

Working Papers from HAL

Abstract: From a sample of commercial banks in Asia Pacific over the 1994-2009 period, this study highlights that banks in less competitive markets exhibit lower loan growth and higher instability. Such instability is further followed by a decline in deposit growth, suggesting that Asian banks are also subject to indirect market discipline mechanisms through bank market structure. This study therefore sheds light on the importance of enhancing bank competition to overcome bank risk and strengthen financial intermediation. This study also advocates greater reliance on market discipline to promote bank stability.

Keywords: Bank competition; loan growth; risk; market discipline; Asia Pacific (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ban, nep-com, nep-cwa and nep-sea
Note: View the original document on HAL open archive server: https://unilim.hal.science/hal-00947575v1
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Citations: View citations in EconPapers (2)

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Working Paper: Market structure, financial intermediation and riskiness of banks:Evidence from Asia Pacific (2015)
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