Links between ownership, market structure and risk
The relationship in developing countries between banks' risk of failure, market structure, their ownership, and screening and bankruptcy costs is investigated in an International Monetary Fund paper published on Wednesday.
Using more than 10,000 bank-year observations for 133 non-industrialised countries observed between 1993 and 2004, the research uncovers three findings:
The link between bank concentration and bank risk of failure is stronger when bank ownership is taken into account, and is
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