Banking competition and financial fragility: Evidence from panel-data

Antonio Ruiz-Porras

MPRA Paper from University Library of Munich, Germany

Abstract: We study how banking competition may affect the stability of banking systems. We develop our study by expanding the failure-determinant methodology to include panel-data techniques and by controlling the effects of financial structure and development. We use indicators for 47 countries between 1990 and 1997. The main findings show that banking concentration and foreign ownership are associated to bank-based financial systems and financial underdevelopment. They also show that banking credit and bank-based financial systems enhance banking fragility. Banking concentration is not a significant determinant. Furthermore our findings suggest that financial structure and, maybe, the property regime matter to assess fragility.

Keywords: Banks; competition; fragility; financial systems (search for similar items in EconPapers)
JEL-codes: D40 G10 G21 L16 (search for similar items in EconPapers)
Date: 2007-10-29
New Economics Papers: this item is included in nep-ban, nep-bec, nep-cfn and nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Banking Competition and Financial Fragility: Evidence from Panel-Data (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:5673

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