Competition strengthens banks close to insolvency – BoE paper

Competition policies have a mixed impact on the banking sector, BoE paper says

online-banking

Policies that look to foster competition in the banking sector might actually drive improvements in the stability of firms that are close to insolvency, a working paper published by the Bank of England concludes.

Using data from between 1994 and 2013, Sebastian de-Ramon, William Francis and Michael Straughan conclude competition “on average”, lowers stability. But the effect of competition appears to vary across banks depending on their underlying health.

According to the results, competition

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.