Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154111
Authors: 
Marqués-Ibáñez, David
Altunbas, Yener
van Leuvensteijn, Michiel
Year of Publication: 
2014
Series/Report no.: 
ECB Working Paper 1678
Abstract: 
We find that the increased use of securitisation activity in the banking sector prior to the 2007- 2009 crisis augmented the effect of competition on realised bank risk (i.e. more intense competition and greater use of securitisation is correlated with higher levels of realised risk) during the crisis. In contrast, higher levels of capital did not buffer the impact of competition on realised risk. It follows that cooperation between supervisory and competition authorities is warranted to account for the stability implications of financial innovation and capital regulation.
Subjects: 
bank risk
competition
securitisation
JEL: 
G21
D22
Document Type: 
Working Paper

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