Big Banks and Macroeconomic Outcomes: Theory and Cross‐Country Evidence of Granularity
Franziska Bremus,
Claudia Buch,
Katheryn Russ and
Monika Schnitzer ()
Journal of Money, Credit and Banking, 2018, vol. 50, issue 8, 1785-1825
Abstract:
Does the mere presence of big banks affect macroeconomic outcomes? We develop a theory of granularity for the banking sector by modeling heterogeneous banks charging variable markups. Using data for a large set of countries, we show that the banking sector is indeed “granular,” as the right tail of the bank size distribution follows a power law. We demonstrate empirically that the presence of big banks, measured by a high degree of market concentration, is associated with a positive and significant relationship between bank‐level credit growth and aggregate growth of credit or GDP.
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)
Downloads: (external link)
https://doi.org/10.1111/jmcb.12545
Related works:
Working Paper: Big Banks and Macroeconomic Outcomes: Theory and Cross-Country Evidence of Granularity (2018)
Working Paper: Big Banks and Macroeconomic Outcomes: Theory and Cross-Country Evidence of Granularity (2013) 
Working Paper: Big Banks and Macroeconomic Outcomes: Theory and Cross-Country Evidence of Granularity (2013) 
Working Paper: Big Banks and Macroeconomic Outcomes: Theory and Cross-Country Evidence of Granularity (2013) 
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:wly:jmoncb:v:50:y:2018:i:8:p:1785-1825
Access Statistics for this article
Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West
More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().