Competition Stability and Financial Crisis in Thai Banking Sector

Anirut Pisedtasalasai () and Karnsiree Rujiratpichathorn ()
Additional contact information
Anirut Pisedtasalasai: Department of Banking and Finance Chulalongkorn Business School Chulalongkorn University Bangkok Thailand, Postal: TH
Karnsiree Rujiratpichathorn: Department of Banking and Finance Chulalongkorn Business School Chulalongkorn University Bangkok Thailand, Postal: TH

Journal of Advanced Studies in Finance, 2017, vol. 8, issue 1, 5-18

Abstract: This paper studies the trend of competition in banking industry in Thailand from 1992 to 2013 Furthermore we investigate whether the change in the competition environment has any impacts on the financial stability of the banking system First we find that the competition level was volatile in the 1990s but became much more stable over the last 7 years Secondly our result suggests that the degree of competition in banking industry destabilizes the financial system due to equity capital reduction higher banks risk taking behavior and banks probability of default However by taking the 1997 Asian financial crisis into account an increasing competition level after 1998 produces less negative effect to insolvency risk compared with the before crisis period and the impacts of competition on banks equity capital and risk taking behavior have started disappearing since then due to developments in financial market which diminish the loan market shares and increase portfolio diversification as well as the financial reforms in following years after the severe financial crisis

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:srs:jasf00:v:8:y:2017:i:1:p:5-18

Access Statistics for this article

Journal of Advanced Studies in Finance is currently edited by Laura GAVRILĂ (formerly Ştefănescu)

More articles in Journal of Advanced Studies in Finance from ASERS Publishing
Bibliographic data for series maintained by Claudiu Popirlan ( this e-mail address is bad, please contact ).