Essays on banking competition, regulation and stability

Tziatzias, Georgios 2017. Essays on banking competition, regulation and stability. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

The turbulent period of the last decade has highlighted the importance of the financial sector and the need for a flexible set of regulations and due diligence in order to have a healthy, sustainable and prosperous financial system. It has also given rise to important questions about the effect of current regulation and competition policies on the bank’s behaviour, economic growth and financial stability. This thesis has attempted to answer these questions, firstly, by analysing the effect of capital requirements on the UK banks’ choice for risk and capital and found evidence that they consider them as complements. This is making the policymaker’s decision more complicating as the end result of the bank’s stability cannot easily be determined because of that co-movement. Secondly, this thesis supports the existence of the bank capital channel for the case of the UK commercial banks. The focus is on the composition of their loan portfolio and capital growth following a change in capital requirements. I find evidence of structural change in the bank’s loan and capital management approach during and after the financial crisis, with the banks become significantly more responsive to capital requirements changes compared to the period before the crisis. Thirdly, the competition-fragility is documented for advanced Western economies when using concentration and market power as proxies for competition, while the competition-stability is present when using the Boone indicator which a measure of firm efficiency. Lastly, a strong regulatory framework becomes more beneficial for less competitive markets.

Item Type:	Thesis (PhD)
Date Type:	Acceptance
Status:	Unpublished
Schools:	Business (Including Economics)
Date of First Compliant Deposit:	2 May 2018
Date of Acceptance:	September 2017
Last Modified:	15 Sep 2021 11:19
URI:	https://orca.cardiff.ac.uk/id/eprint/111143

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