TY - JOUR

T1 - Competition and stability in European Banking: A regional analysis

AU - Liu, Hong

AU - Molyneux, Philip

AU - Wilson, John O. S.

PY - 2013/3

Y1 - 2013/3

N2 - National measures of competition and macroeconomic activity have traditionally been used to examine performance and risk features across banks. Such measures may be inappropriate in cases where banks operate with a regional focus. In this paper we construct measures of competition and economic activity using regional data to examine bank stability in 10 European countries over the period 2000–8. The results suggest that an inverted U‐shaped relationship exists between regional bank competition and stability. Regional economic conditions are also found to play a significant role in determining the stability of European banks.

AB - National measures of competition and macroeconomic activity have traditionally been used to examine performance and risk features across banks. Such measures may be inappropriate in cases where banks operate with a regional focus. In this paper we construct measures of competition and economic activity using regional data to examine bank stability in 10 European countries over the period 2000–8. The results suggest that an inverted U‐shaped relationship exists between regional bank competition and stability. Regional economic conditions are also found to play a significant role in determining the stability of European banks.

U2 - 10.1111/j.1467-9957.2011.02285.x

DO - 10.1111/j.1467-9957.2011.02285.x

M3 - Article

VL - 81

SP - 176

EP - 201

JO - The Manchester School

JF - The Manchester School

SN - 1467-9957

IS - 2

ER -