Does Competition Affect Bank Risk?
研究竞争对银行风险的影响，发现竞争加剧会显著提高银行风险，通过降低利润、定价权和特许权价值，并促使银行提供更多高风险服务。
Abstract Although policymakers often discuss trade‐offs between bank competition and stability, past research provides differing theoretical perspectives and empirical results on the impact of competition on risk. We employ a new approach for identifying exogenous changes in the competitive pressures facing individual banks and discover that an intensification of competition materially boosts bank risk. With respect to the mechanisms, we find that competition reduces banks’ profits, pricing power, and charter values and increases banks’ provision of nontraditional, riskier banking services and lending to riskier firms.