Bank competition and stability in the CIS markets

Ephraim Clark, Nemanja Radić and Alma Sharipova

Journal of International Financial Markets, Institutions and Money, 2018, vol. 54, issue C, 190-203

Abstract: This paper investigates the impact of bank competition on financial stability in the transition markets of the Commonwealth of Independent States (CIS) in the context of the competing competition-stability/competition-fragility hypotheses found in the literature. Our results verify the competition-stability hypothesis and show that competition contributes to financial stability in these countries. We also find that besides competition, legal rights of borrowers and lenders and the supervisory power of the regulator have a significant, positive impact on CIS bank stability. These results are robust with respect to a range of instrumental variables, model specification, subsample testing, and alternative measures of competition.

Keywords: Bank stability and competition; Banking system fragility; Regulation; CISs (search for similar items in EconPapers)
JEL-codes: F30 G21 G28 L89 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:54:y:2018:i:c:p:190-203

DOI: 10.1016/j.intfin.2017.12.005

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