Does Bank Competition Affect Risk Taking?

This paper examines the presence of two competing views - “competition-fragility” and “competition-stability” in analyzing the impact of competition on bank stability. The approach is to first extend measures of bank competition from a unique dataset of balance sheet and income statements for 542 banks operating in the Philippines through the global Covid-19 pandemic period. Using panel quantile regression, the results reveal that, at the industry level, bank competition reduces solvency risk and that it enhances bank stability amid the temporary negative impact of the global pandemic on bank balance sheets.

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Видео Does Bank Competition Affect Risk Taking? канала Ateneo de Manila University