Banking competition and financial fragility: Evidence from panel-data

We study how competition may affect the stability of banking systems. We modify the failure-determinant methodology to include panel-data techniques. We use indicators for 47 countries between 1990 and 1997. The main findings show that banking concentration and foreign ownership are associated to ba...

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Detalhes bibliográficos
Autor: Ruiz Porras, Antonio
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2008
País:México
Recursos:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:inglés
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/138
Acesso em linha:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/138
Access Level:acceso abierto
Palavra-chave:banks
competition
fragility
financial systems
G10
G21
D40
L16
bancos
competencia
fragilidad
sistemas financieros
Descrição
Resumo:We study how competition may affect the stability of banking systems. We modify the failure-determinant methodology to include panel-data techniques. 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 such fragility.