TY  - UNPD
A1  - Goetz, Martin
T1  - Competition and bank stability
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 559
N2  - Does an increase in competition increase or decrease bank stability? I exploit how the state-specific process of interstate banking deregulation lowered barriers to entry into urban banking markets and find that greater competition significantly increases bank stability. This result is robust to the inclusion of additional fixed effects and other influences, such as merger and acquisitions or diversification. Moreover, I find that greater competition reduces banks' nonperforming loans and increases bank profitability. These findings suggest that competition increases stability as it improves bank profitability and asset quality.
T3  - CFS working paper series - 559 
KW  - Risk
KW  - Stability
KW  - Competition
KW  - Contestability
KW  - Entry
KW  - Bank Deregulation
KW  - Lending
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/42077
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-420770
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2869189
IS  - November 9, 2016
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -