| Record ID | marc_loc_updates/v37.i26.records.utf8:58461297:2525 |
| Source | Library of Congress |
| Download Link | /show-records/marc_loc_updates/v37.i26.records.utf8:58461297:2525?format=raw |
LEADER: 02525nam a22003017a 4500
001 2009655714
003 DLC
005 20090629151432.0
007 cr |||||||||||
008 090518s2008 dcu sb i000 0 eng
010 $a 2009655714
040 $aDLC$cDLC
050 00 $aHG3881.5.W57
100 1 $aBerger, Allen N.
245 10 $aBank competition and financial stability$h[electronic resource] /$cAllen N. Berger, Leora F. Klapper, Rima Turk-Ariss.
260 $a[Washington, D.C. :$bWorld Bank,$c2008]
490 1 $aPolicy research working paper ;$v4696
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 5/18/2009.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"Under the traditional "competition-fragility" view, more bank competition erodes market power, decreases profit margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative "competition-stability" view, more market power in the loan market may result in greater bank risk as the higher interest rates charged to loan customers make it more difficult to repay loans and exacerbate moral hazard and adverse selection problems. But even if market power in the loan market results in riskier loan portfolios, the overall risks of banks need not increase if banks protect their franchise values by increasing their equity capital or engaging in other risk-mitigating techniques. The authors test these theories by regressing measures of loan risk, bank risk, and bank equity capital on several measures of market power, as well as indicators of the business environment, using data for 8,235 banks in 23 developed nations. The results suggest that - consistent with the traditional "competition-fragility" view - banks with a greater degree of market power also have less overall risk exposure. The data also provide some support for one element of the "competition-stability" view - that market power increases loan portfolio risk. The authors show that this risk may be offset in part by higher equity capital ratios. "--World Bank web site.
700 1 $aKlapper, Leora.
700 1 $aTurk-Ariss, Rima.
710 2 $aWorld Bank.
830 0 $aPolicy research working papers (Online) ;$v4696.
856 40 $uhttp://econ.worldbank.org/external/default/main?pagePK=64165259&theSitePK=469372&piPK=64165421&menuPK=64166093&entityID=000158349_20080820103955