Competition, Efficiency, and Stability in Banking
使用基于利润从低效银行向高效银行重新配置的新竞争度量，发现竞争能增强银行稳定性，且对健康银行的效果更大，效率是竞争影响稳定性的渠道。
We examine the effect of competition on banking stability using a new measure of competition based on the reallocation of profits from inefficient banks to efficient ones. In a sample of European Banks, we find that this measure does capture competition, that competition is stability‐enhancing, and that the stability‐enhancing effect of competition is greater for healthy banks than for fragile ones. Our results suggest that efficiency is the conduit through which competition contributes to stability and that regulators must condition policy on the health of existing banks.