05706oam 22012614 450 991097077700332120250426110823.0978661284357097814623759501462375952978145279648214527964839781282843578128284357597814518729031451872909(CKB)3170000000055289(EBL)1608342(SSID)ssj0000940061(PQKBManifestationID)11600617(PQKBTitleCode)TC0000940061(PQKBWorkID)10947099(PQKB)11354402(OCoLC)712987729(IMF)WPIEE2009143(MiAaPQ)EBC1608342(IMF)WPIEA2009143WPIEA2009143(EXLCZ)99317000000005528920020129d2009 uf 0engur|n|---|||||txtccrBank Competition, Risk, and Asset Allocations /John Boyd, Gianni De Nicolo, Abu M. Jalal1st ed.Washington, D.C. :International Monetary Fund,2009.1 online resource (37 p.)IMF Working Papers"July 2009."9781451917192 1451917198 Table of Contents; I. Introduction; II. The Model; Entrepreneurs; Depositors; Banks; Equilibrium; III. Evidence; A. Measurement of competition; B. Measurement of risk; C. Samples; D. Results for the U.S. Sample; E. Results for the International Sample; IV. Alternative Risk Measures; A. Loan Loss Measures of Risk; B. Actual Failures (or near failures) as the Dependent Variable; V. Conclusion; References; Tables; 1. U.S. Sample; 2. U.S. Sample Regressions; 3. International Sample; 4. International Sample Regressions; 5. U.S. Sample Loan Loss Measures; 6. International Sample Loan Loss Measures7. International Sample: Proxy Measures of (near) FailureWe study a banking model in which banks invest in a riskless asset and compete in both deposit and risky loan markets. The model predicts that as competition increases, both loans and assets increase; however, the effect on the loans-to-assets ratio is ambiguous. Similarly, as competition increases, the probability of bank failure can either increase or decrease. We explore these predictions empirically using a cross-sectional sample of 2,500 U.S. banks in 2003, and a panel data set of about 2600 banks in 134 non-industrialized countries for the period 1993-2004. With both samples, we find that banks' probability of failure is negatively and significantly related to measures of competition, and that the loan-to-asset ratio is positively and significantly related to measures of competition. Furthermore, several loan loss measures commonly employed in the literature are negatively and significantly related to measures of bank competition. Thus, there is no evidence of a trade-off between bank competition and stability, and bank competition seems to foster banks' willingness to lend.IMF Working Papers; Working Paper ;No. 2009/143Banks and bankingEconometric modelsCompetitionEconometric modelsAsset allocationRisk managementBank creditimfBankingimfBanks and BankingimfBanks and bankingimfBanksimfCompetitionimfCreditimfDepository InstitutionsimfDistressed institutionsimfFinanceimfFinance: GeneralimfFinancial Institutions and Services: GeneralimfFinancial services industryimfGeneral Financial Markets: General (includes Measurement and Data)imfIndustries: Financial ServicesimfLoansimfMicro Finance InstitutionsimfMonetary economicsimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfMoney and Monetary PolicyimfMortgagesimfUnited StatesimfBanks and bankingEconometric models.CompetitionEconometric models.Asset allocation.Risk management.Bank creditBankingBanks and BankingBanks and bankingBanksCompetitionCreditDepository InstitutionsDistressed institutionsFinanceFinance: GeneralFinancial Institutions and Services: GeneralFinancial services industryGeneral Financial Markets: General (includes Measurement and Data)Industries: Financial ServicesLoansMicro Finance InstitutionsMonetary economicsMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralMoney and Monetary PolicyMortgages332.1Boyd John341064De Nicolo Gianni375199Jalal Abu M1816426International Monetary Fund.Research Dept.DcWaIMFBOOK9910970777003321Bank Competition, Risk, and Asset Allocations4372486UNINA