Detailed Information
Cited 42 time in 
Cited 45 time in 
Cited 45 time in
Metadata Downloads
Bank competition and financial stability: A comparison of commercial banks and mutual savings banks in Korea
- Authors
- Jeon, Jin Q.; Lim, Kwang Kyu
- Issue Date
- Nov-2013
- Publisher
- ELSEVIER
- Keywords
- Bank competition; Stability; Risk shifting; Mutual saving banks; Commercial banks
- Citation
- PACIFIC-BASIN FINANCE JOURNAL, v.25, pp 253 - 272
- Pages
- 20
- Indexed
- SSCI
SCOPUS
- Journal Title
- PACIFIC-BASIN FINANCE JOURNAL
- Volume
- 25
- Start Page
- 253
- End Page
- 272
- ISSN
- 0927-538X
1879-0585
- Abstract
- In this study, we provide new evidence that the relationship between banking competition and financial stability varies depending on the characteristics of banks. By using a sample of two different types of banks, Korean commercial banks and mutual savings banks, we find that the non-linear relationship between competition and the stability of commercial banks reflects a trade-off between the interest effect and risk-shifting effect. However, consistent with Boyd and De Nicolo (2005), competition has a positive effect on the stability of mutual savings banks with greater business risk and weaker corporate governance. Our results provide important implications on banking competition policy. (C) 2013 Elsevier B.V. All rights reserved.
- Files in This Item
- There are no files associated with this item.
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.
Related Researcher
- Jeon, Jin Q
- Dongguk Business School (Department of Business Administration)