Competition And Stability In Banking
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This report examines the interplay between banking competition and financial stability, taking into account the experiences in the recent global crisis and the
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We study versions of a general equilibrium banking model with moral hazard under either constant or increasing returns to scale of the intermediation technology
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We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We first develop a theoretical model of the rela
Language: en
Pages: 42
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We study a banking model in which banks invest in a riskless asset and compete in both deposit and risky loan markets. The model predicts that as competition in