How competition and regulation drive bank and investment fund risk profiles and their market shares

Michael Grill, Daria Kalyaeva and Claudia Lambert

Macroprudential Bulletin, 2018, vol. 5

Abstract: The rapid growth of the asset management sector over recent years has raised questions about the interaction between traditional banks and investment funds, as well as the drivers behind this trend. Our analysis contributes to this debate by shedding light on the implications of increased competition between the two sectors. We first examine how competition between banks and investment funds drives the risk profiles and market shares of these two sectors. In a second step, we assess whether and how capital requirements for banks influence the relative market shares of the two sectors, contributing to both the analysis of the drivers behind the structural developments in the euro area financial sector and the work on the evaluation of the impact of post-crisis reforms. JEL Classification: G21, G23, G28

Keywords: asset management; banking; capital requirements; competition (search for similar items in EconPapers)
Date: 2018-04
Note: 1280809
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbmbu:2018:0005:2

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