À繫¿¬±¸ Á¦ ±Ç È£ (2012³â 5¿ù)
Asian Review of Financial Research, Vol., No..
pp.1478~1520
pp.1478~1520
Does Competition Affect the Role of Banks as Liquidity Providers?
Sung Wook JOH Seoul National University
Jeongsim Kim Seoul National University
This paper examines the relationship between competition in the banking industry and liquidity that banks provide. Using a panel dataset of commercial banks in 25 OECD countries during the period 2000-2010, we find that banks provide more liquidity as the banking industry becomes more concentrated. The result is robust even after controlling for endogeneity issues and after using the Lerner index as a proxy of market power. In addition, large banks increase liquidity supply in the concentrated market, while small banks do not show significant results.
Sung Wook JOH
Jeongsim Kim
This paper examines the relationship between competition in the banking industry and liquidity that banks provide. Using a panel dataset of commercial banks in 25 OECD countries during the period 2000-2010, we find that banks provide more liquidity as the banking industry becomes more concentrated. The result is robust even after controlling for endogeneity issues and after using the Lerner index as a proxy of market power. In addition, large banks increase liquidity supply in the concentrated market, while small banks do not show significant results.
bank competition,credit supply,liquidity provider,liquidity creation,regulation