학회소식
[2012년 제 4차] Does Competition Affect the Role of Banks as Liquid
작성자 : 관리자
조회수 : 1063
게시일 :
2012-12-12
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 changes depending on market structure.
