- Home
- Publications
- Banking Concentration And Financial Crises
Banking Concentration and Financial Crises
External Authors
Barrell, R
Karim, D
Related Themes
Macro-Economic Dynamics and PolicyJEL Code
E44; G01; G18;
Paper Category Number
516
Policy makers need to know if the structure of competition and the degree of banking market concentration change the incidence of financial crises. Previous studies have not always come to clear conclusions. We use a new dataset of 19 countries where we include capital adequacy and house price growth as factors affecting crisis incidence, and we find a positive role for bank concentration in reducing incidence. In addition, we look at New Industrial Economics indicators of market structure and find that increased market power also reduces crisis incidence. We conclude that attempts to increase competition in banking, although welcome for welfare reasons, should be accompanied by increases in capital standards.
Related Blog Posts
Public Debt Sustainability and Fiscal Rules
Stephen Millard
Benjamin Caswell
05 Feb 2024
4 min read
UK Investment Past and Prospects: A Framework for Analysis
Catherine Mann
01 Dec 2023
6 min read
Related Projects
Related News
Call for Papers: Lessons From Quantitative Easing & Quantitative Tightening
09 Feb 2024
1 min read
Related Publications
The Nature of the Inflationary Surprise in Europe and the USA
21 Mar 2024
Discussion Papers
Energy and Climate Policy in a DSGE Model of the United Kingdom
08 Mar 2024
Discussion Papers
Exploring Alternative Data Sources for Household Wealth Statistics
24 Jan 2024
Discussion Papers
Inflation Differentials Among European Monetary Union Countries: An Empirical Evaluation With Structural Breaks
20 Nov 2023
National Institute Economic Review