 Bank risk, competition and bank connectedness with firms: A literature reviewCristina Badarau and Ion Lapteacru () Research in International Business and Finance, 2020, vol. 51, issue C Abstract: The outbreak of the 2007–2009 financial crisis and of the European sovereign debt crisis again raised questions about the vulnerability and the behaviour of banking institutions. The unconventional monetary policies that followed have flattened the yield curve and created a low interest rates environment. This can give rise to risk-taking behaviour from banks and can therefore undermine the stability of the banking system with negative impact of the credit supply, corporate investment and real economy. This article proposes a literature review on the main determinants of bank lending and risk-taking decisions, going through the competition in the banking market, the bank connectedness with firms and the role of monetary and banking authorities. The systemic risk concept is also discussed as well as its drivers and potential measures that should be monitored by prudential authorities in order to preserve financial stability. Keywords: Banking competition; Bank risk; Bank connectedness with firms; Systemic risk (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:51:y:2020:i:c:s0275531919301291 DOI: 10.1016/j.ribaf.2019.03.004 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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