Competition and financial crisis

Financial Structure and Financial Crisis

For many years the economies of South East Asia were regarded as models for economic development. The four tigers, Hong Kong, South Korea, Singapore and Taiwan, grew from low levels of income per head to among the highest in the world in a few decades. The newly industrializing economies of Indonesia, Malaysia and Thailand had also started to grow at an extremely rapid rate. The Philippines had...

Crisis Transmission: Global Financial Crisis

The aim of this paper is to explore, empirically, the channels of crisis transmission with regard to the Global financial crisis. EMP-based crisis proxy is used for eight countries, which include Argentina, Brazil, Canada, Indonesia, Japan, Korea, Mexico and Russia. The period considered for estimation was Q1 2001 Q2 2010. Based on the Vector AutoRegression (VAR) and Ordinary Least Squares (OLS...

Financial market crisis and financial market channel

Competition and Financial Stability1

Competition policy in the banking sector is complicated by the necessity of maintaining financial stability. Greater competition may be good for (static) efficiency, but bad for financial stability. From the point of view of welfare economics, the relevant question is: What are the efficient levels of competition and financial stability? We use a variety of models to address this question and f...

Competition and Financial Stability

Competition in the Þnancial sector is more complex than in the rest of the economy. On the one hand, concentration in the banking industry reduces (static) efficiency as it does in any industry. On the other hand, concentration may also affect the stability of the banking industry in ways that have no counterpart in other industries. In this paper we consider a variety of models of competition ...