Bank Concentration and Crises

By Thorsten Beck, Asli Demirgüç-Kunt, Ross Levine. 2003

292 citations recorded by the source corpus.

The authors study the impact of bank concentration, regulations, and national institutions on the likelihood of suffering a systemic banking crisis. Using data on 79 countries over the period 1980-97, they find that crises are less likely (1) in more concentrated banking systems, (2) in countries with fewer regulatory restrictions on bank competition and activities, and (3) in economies with better institutions, that is, institutions that encourage competition and support private property rights.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/996252bd328b2ab4926b67cb6f1bedd99988b84b

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Citations in the corpus

Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Depreciations (2008, background): “For example, Beck et al. (2003) and Caprio and Klingebiel (1999) demonstrate that banking crises often occur at the same time as currency crises in emerging markets. As noted by Stein (2003), these macroeconomic models are closely related to the larger literature that links financial constraints, st”
Financial liberalization, prudential supervision, and the onset of banking crises (2004, background): “7 Beck et al. (2003), Demirgüç-Kunt and Detragiache (2002), and Mehrez and Kaufman (1999) provide more comprehensive institutional details on the causes of banking crises but do not examine the question of liberalization. were ‘connected’ with industrial groups or influential families were more…”
Comment on "Bank Competition and Access to Finance: International Evidence" (2004, background): “In a recent paper, Beck, Demirgüç-Kunt, and Levine (2003) question whether market concentration is measuring something else besides market power.”
The Real Output Losses Associated with Modern Banking Crises (2005, methodology): “We obtained a different sample of banking crisis countries, constructed by Beck, Demirguc-Kunt, and Levine (2003).”
The economic value of regulated disclosure: Evidence from the banking sector (2006, methodology): “The data from the survey have been extensively used in recent bank regulation studies (e.g., Barth et al., 2004; Beck et al., 2003; Cull et al., 2005; Cleassens and Laeven, 2004; and DemirgucKunt, and Detragiache, 2004).”
Banking Sector Performance in Latin America: Market Power Versus Efficiency (2011, unknown): “For example, Beck et al. (2003) analyze the relationship between market structure and bank performance for 364 banks operating in 8 Central and Eastern European Countries for the period 1998 to 2001.”
Banks without Parachutes – Competitive Effects of Government Bail-out Policies (2010, unknown): “…to be accompanied by declining charter values in banking (see Demirguc-Kunt and Detragiache, 1999).10 In contrast, a recent cross-country study by Beck, Demirguc-Kunt, and Levine (2003) shows that systemic banking crises are less likely in countries with more concentrated banking sectors, but…”
The impact of bank regulations, concentration, and institutions on bank margins (2003, background): “…research does not find countervailing benefits from regulatory restrictions on bank entry, activities, or freedom in terms of bank stability, firms’ access to external finance, or overall financial development (Beck, Demirguc-Kunt, and Levine, 2003a,b; Barth, Caprio, and Levine, 2003).”