Bank Competition, Ownership and Stability: A Review

Abstract

This paper provides a review of the recent literature in banking around several primary themes of competition and bank ownership. This review is presented against the backdrop of the 2008 financial crisis and the revolution it caused to banking sectors in across the globe. Several themes emerge from this review, regarding bank completion, capital allocation, bank ownership and financial stability. Moreover, the overarching issue related to better understanding bank risk taking incentives through ownership and competition and the implications for financial stability are highlighted. Full paper available at: https://doi.org/10.21102/graf.2019.03.101.01

Keywords: Bank Stability, Government bailouts, Bank Ownership, Market Discipline, Bank Competition