NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Bank Concentration and Crises

Thorsten Beck, Asli Demirguc-Kunt, Ross Levine

NBER Working Paper No. 9921
Issued in August 2003
NBER Program(s):   IFM   ME   AP

Motivated by public policy debates about bank consolidation and conflicting theoretical predictions about the relationship between the market structure of the banking industry and bank fragility, this paper studies the impact of bank concentration, bank regulations, and national institutions on the likelihood of suffering a systemic banking crisis. Using data on 70 countries from 1980 to 1997, we find that crises are less likely in economies with (i) more concentrated banking systems, (ii) fewer regulatory restrictions on bank competition and activities, and (iii) national institutions that encourage competition.

download in pdf format
   (296 K)

email paper

A non-technical summary of this paper is available in the February 2004 NBER digest.  You can sign up to receive the NBER Digest by email.

This paper is available as PDF (296 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9921

Published: Beck, Thorsten, Asli Demirguc-Kunt and Ross Levine. "Bank Concentration, Competition, And Crises: First Results," Journal of Banking and Finance, 2006, v30(5,May), 1581-1603.

Users who downloaded this paper also downloaded these:
Diamond and Rajan w7431 A Theory of Bank Capital
Beck, Demirguc-Kunt, and Levine w11500 Bank Concentration and Fragility: Impact and Mechanics
Demirguc-Kunt, Laeven, and Levine w9890 Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation
Beck Bank Concentration and Fragility. Impact and Mechanics
Barth, Caprio, and Levine Banking Systems around the Globe: Do Regulation and Ownership Affect Performance and Stability?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us