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Does the size and market structure of the banking sector have an effect on the financial stability of the European Union?

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  • Pawlowska, Malgorzata

Abstract

The aim of this paper is to discuss changes in the banking sectors of European Union (EU) countries both before and during the last global financial crisis, with particular emphasis on the change in market structure, in an attempt to determine the relationship between size, competition, and risk-taking behavior by banks. This paper also addresses the problems in the banking sector of the EU (i.e., that banks are too-big-to-fail [TBTF]).

Suggested Citation

  • Pawlowska, Malgorzata, 2016. "Does the size and market structure of the banking sector have an effect on the financial stability of the European Union?," The Journal of Economic Asymmetries, Elsevier, vol. 14(PA), pages 112-127.
    • Handle: RePEc:eee:joecas:v:14:y:2016:i:pa:p:112-127
    DOI: 10.1016/j.jeca.2016.07.009
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    5. Kouretas, Georgios P. & Pawłowska, Małgorzata & Szafrański, Grzegorz, 2020. "Market structure and credit procyclicality: Lessons from loan markets in the European Union banking sectors," Economic Modelling, Elsevier, vol. 93(C), pages 27-50.
    6. Shijaku, Gerti, 2017. "Bank Stability and Competition: Evidence from Albanian Banking Market," MPRA Paper 79891, University Library of Munich, Germany.
    7. Shijaku, Gerti, 2016. "Does concentration matter for bank stability - evidence from Albanian Banking System," MPRA Paper 79086, University Library of Munich, Germany.
    8. Belén Díaz Díaz & Rebeca García‐Ramos & Myriam García Olalla, 2020. "Does regulating remuneration affect the market value of European Union banks? Large versus small/medium sized banks," Regulation & Governance, John Wiley & Sons, vol. 14(1), pages 150-164, January.
    9. Shijaku, Gerti, 2016. "Does bank competition affect bank stability after the global financial crisis?," MPRA Paper 79084, University Library of Munich, Germany.
    10. Khattak, Mudeer Ahmed & Ali, Mohsin & Azmi, Wajahat & Rizvi, Syed Aun R., 2023. "Digital transformation, diversification and stability: What do we know about banks?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 122-132.
    11. Ikram Ullah Khan & Sadaqat Ali & Habib Nawaz Khan, 2018. "Market Concentration, Risk-taking, and Efficiency of Commercial Banks in Pakistan: An Application of the Two-Stage Double Bootstrap DEA," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(2), pages 65-96, June.
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    15. Samangi Bandaranayake & Kuntal K. Das & W. Robert Reed, 2018. "A Replication of “Bank Competition and Financial Stability: Much Ado About Nothing?” (Journal of Economic Surveys, 2016)," Working Papers in Economics 18/18, University of Canterbury, Department of Economics and Finance.
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    More about this item

    Keywords

    Market structure; European Union (EU); Financial stability; Are too-big-to-fail (TBTF); Panel data analysis; GMM;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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