Competition and Stability in Banking: The Role of Regulation and Competition Policy

Amazon.com Price: $30.23 (as of 11/10/2019 04:51 PST- Details)

Categories: , , , , , , , , , ,

Description

Does too much competition in banking hurt society? What policies can best give protection to and stabilize banking without stifling it? Institutional responses to such questions have evolved over the years, from interventionist regulatory keep an eye on after the Great Depression to the liberalization policies that started in the USA in the 1970s. The global financial crisis of 2007–2009, which originated from an oversupply of credit, once again raised questions about over the top banking competition and what must be done about it. Competition and Stability in Banking addresses the critical relationships between competition, regulation, and stability, and the implications of coordinating banking regulations with competition policies.

Xavier Vives argues that even as competition is not responsible for fragility in banking, there are trade-offs between competition and stability. Well-designed regulations would alleviate these trade-offs but not get rid of them, and the specificity of competition in banking must be accounted for. Vives argues that regulation and competition policy must be coordinated, with tighter prudential requirements in more competitive situations, but he also shows that supervisory and competition authorities must stand separate from each other, each pursuing its own objective. Vives reviews the theory and empirics of banking competition, drawing on up-to-date analysis that incorporates the characteristics of modern market-based banking, and he looks at regulation, competition policies, and crisis interventions in Europe and the USA, in addition to in emerging economies.

Focusing on why banking competition policies are necessary, Competition and Stability in Banking examines regulation’s affect on the industry’s efficiency and effectiveness.

Related products

Home » Shop » Books » Specialty Boutique » New, Used and Rental Textbooks » Business and Finance » Banking » Competition and Stability in Banking: The Role of Regulation and Competition Policy

Recent Products