Beck, Thorsten2012-06-012012-06-012008-06https://hdl.handle.net/10986/6863Theory makes ambiguous predictions about the relationship between market structure and competitiveness of the banking system and banking sector stability. Empirical studies focusing on individual countries provide similarly ambiguous results, while cross-country studies point mostly to a positive relationship between competition and stability in the banking system. Where liberalization and unfettered competition have resulted in fragility, this has been mostly the consequence of regulatory and supervisory failures. The advantages of competition for an efficient and inclusive financial system are strong, and regulatory and supervisory policies should focus on an incentive-compatible environment for banking rather than try to fine-tune market structure or the degree of competition.CC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEARBITRAGEBALANCE SHEETBANK ACQUISITIONSBANK ACTIVITYBANK ASSETBANK CAPITALIZATIONBANK COMPETITIONBANK CONSOLIDATIONBANK FAILUREBANK FAILURE RESOLUTIONBANK FAILURESBANK FOR INTERNATIONAL SETTLEMENTSBANK HOLDING COMPANIESBANK LOANSBANK MERGERSBANK OF ENGLANDBANK REGULATIONBANK RISKBANK SUPERVISORSBANKING CRISESBANKING CRISISBANKING DISTRESSBANKING INDUSTRYBANKING REGULATIONBANKING RELATIONSHIPSBANKING SECTORBANKING STABILITYBANKING STRUCTUREBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBANKSBARRIERBARRIER TO ENTRYBARRIERS TO ENTRYCAPITAL CONTROLSCAPITAL MARKETCAPITAL MARKETSCAPITAL RATIOSCAPITAL REGULATIONCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCENTRAL BANKCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMPETITIVE MARKETSCONSOLIDATED SUPERVISIONCONSOLIDATIONCREDIT DECISIONSCREDIT INFORMATIONCREDIT MARKETCREDIT RATIONINGCREDIT REGISTRIESCREDIT REGISTRYCREDIT REPORTINGCREDIT RISKCREDITORSCROSS-BORDER BANKINGDEPOSITDEPOSIT INSURANCEDEPOSIT INSURANCE PREMIUMSDEPOSIT INSURANCE SCHEMESDEPOSIT INTEREST RATEDEPOSIT INTEREST RATESDEPOSITORDEPOSITORSDEPOSITSDEREGULATIONDEVELOPING COUNTRIESDIVERSIFICATIONDIVERSIFICATION BENEFITSDOMESTIC BANKEARNINGSECONOMIC GROWTHECONOMIES OF SCALEEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSENTRY BARRIERSEQUILIBRIUM CREDITEQUILIBRIUM CREDIT RATIONINGEXCHANGE RATEEXCHANGE RATE REGIMESEXCHANGE RATESEXPOSURESFEDERAL RESERVEFEDERAL RESERVE BANKFEDERAL RESERVE SYSTEMFINANCIAL CONGLOMERATESFINANCIAL CRISESFINANCIAL DEEPENINGFINANCIAL DISTRESSFINANCIAL FRAGILITYFINANCIAL INNOVATIONFINANCIAL INSTABILITYFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL INTERMEDIARYFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL MARKETSFINANCIAL POLICYFINANCIAL PRODUCTSFINANCIAL RISKFINANCIAL SAFETYFINANCIAL SAFETY NETFINANCIAL SAFETY NETSFINANCIAL SECTORFINANCIAL SECTOR STABILITYFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN BANKFOREIGN BANKSFOREIGN ENTRYGOVERNMENT OWNERSHIPGOVERNMENT POLICYGROWTH RATEILLIQUIDITYINEQUALITYINFLATIONINFLATION RATEINFORMATION SHARINGINITIAL INVESTMENTINPUT PRICESINSTITUTIONAL ENVIRONMENTINSURANCEINSURANCE DESIGNINSURERSINTEREST RATEINTEREST RATE CEILINGSINTEREST RATESINTERNATIONAL BANKINTERNATIONAL BANKINGINTERNATIONAL BANKSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETINTERNATIONAL FINANCEINTERNATIONAL RESERVESINTERSTATE BANKINGINVESTMENT BANKINGLENDERLENDER OF LAST RESORTLENDERSLIBERAL ENTRYLOANLOAN CONTRACTSLOAN DEFAULTLOAN GUARANTEESLOAN LOSS PROVISIONSMARGINAL COSTMARKET PARTICIPANTSMARKET SHAREMARKET SHARESMARKET STRUCTUREMARKET STRUCTURESMICROFINANCEMONETARY POLICYMONOPOLYMORAL HAZARDMORTGAGEMORTGAGE MARKETNEW ENTRANTSNEW MARKETSNEW PRODUCTSNOMINAL INTEREST RATEOUTPUTOUTREACHPAYMENT SERVICESPAYMENT SYSTEMPENSIONPENSION FUNDPERFORMANCE MEASURESPOLITICAL ECONOMYPORTFOLIOPORTFOLIOSPOVERTY ALLEVIATIONPRIVATIZATIONPROFITABILITYPRUDENTIAL REGULATIONSPUBLIC CREDITPUBLIC POLICYREAL ESTATEREGULATORSREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREGULATORY POLICIESREGULATORY REQUIREMENTSREPUTATIONRETURN ON ASSETSRISK DIVERSIFICATIONRISK MANAGEMENTRISK OF BANK FAILURERISK PREMIUMSRISK SHARINGRISK TAKINGSAFETY NETSAVINGSSECURITIESSETTLEMENT SYSTEMSSMALL BANKSSUNSET CLAUSESSUPERVISORY AGENCYSUPERVISORY FRAMEWORKSYSTEMIC BANKING CRISESSYSTEMIC BANKING DISTRESSSYSTEMIC RISKTAXATIONTRANSITION COUNTRIESVOLATILITYWorld Bank10.1596/1813-9450-4656