EconPapers    
Economics at your fingertips  
 

Risk and competitiveness in the Italian banking sector

Francesco Marchionne () and Alberto Zazzaro ()

Economics Bulletin, 2018, vol. 38, issue 1, 271-280

Abstract: In this paper, we analyse the relationship between risk and competition in the Italian banking sector over the period from 2006 to 2010. We employ OLS and panel estimators to estimate the impact of the Lerner index, a measure of bank market power, on the Altman Z-score, a proxy of the insolvency probability. Our results are consistent with the traditional charter value paradigm and reject the new risk-shifting paradigm proposed by Boyd-De Nicolò (2005). We find that the relationship between bank risk and competition becomes more tightening during the financial crisis. Our results are robust to different definitions of crisis and different specifications.

Keywords: bank; competition; stability; financial crisis (search for similar items in EconPapers)
JEL-codes: G3 G2 (search for similar items in EconPapers)
Date: 2018-02-09
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I1-P27.pdf (application/pdf)

Related works:
Working Paper: Risk and competitiveness in the Italian banking sector (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-17-00552

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2019-09-12
Handle: RePEc:ebl:ecbull:eb-17-00552