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Should competition policy in banking be amended during crises? Lessons from the EU

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  • Iftekhar Hasan

    (Fordham University
    Bank of Finland)

  • Matej Marinč

    (University of Ljubljana
    University of Amsterdam)

Abstract

This article investigates the nexus of competition and stability in European banking. It analyzes the European legal framework for competition policy in banking and several cases that pertain to anti-cartel policy, merger policy, and state-aid control. It discusses whether and how competition policy should be amended in order to preserve the stability of the banking system during crises. The article argues for increased cooperation between prudential regulators and competition authorities, as well as an enhanced framework for bank regulation, supervision, and resolution that could mitigate the need to change competition policy in crisis times.

Suggested Citation

  • Iftekhar Hasan & Matej Marinč, 2016. "Should competition policy in banking be amended during crises? Lessons from the EU," European Journal of Law and Economics, Springer, vol. 42(2), pages 295-324, October.
    • Handle: RePEc:kap:ejlwec:v:42:y:2016:i:2:d:10.1007_s10657-013-9391-2
    DOI: 10.1007/s10657-013-9391-2
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    More about this item

    Keywords

    Banking; Competition policy; Financial crisis;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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