Banking Competition and Capital Ratios /

We use data for more than 2,600 European banks to test whether increased competition causes banks to hold higher capital ratios. Employing panel data techniques, and distinguishing between the competitive conduct of small and large banks, we show that banks tend to hold higher capital ratios when op...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Cihak, Martin
Weitere Verfasser: Schaeck, Klaus
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2007.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2007/216
Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:We use data for more than 2,600 European banks to test whether increased competition causes banks to hold higher capital ratios. Employing panel data techniques, and distinguishing between the competitive conduct of small and large banks, we show that banks tend to hold higher capital ratios when operating in a more competitive environment. This result holds when controlling for the degree of concentration in banking systems, inter-industry competition, characteristics of the wider financial system, and the regulatory and institutional environment.
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Beschreibung:1 online resource (40 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Zugangseinschränkungen:Electronic access restricted to authorized BRAC University faculty, staff and students