Banking competition and efficiency: a micro-data analysis on the Czech banking industry.(Report) Comparative Economic Studies | June 1, 2008| | COPYRIGHT 2008 Association for Comparative Economic Studies. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information) Copyright

INTRODUCTION

As banks play a fundamental role in the financing of the economy, banking competition exerts an impact on economic development. However, there are some potential negative effects of banking competition through excessive risk-taking by banks, which may hamper financial stability (Allen and Gale, 2004; Carletti and Hartmann, 2002). Moreover, a higher degree of competition in banking markets is expected to provide welfare gains by reducing the prices of financial services and thereby accelerating investment and growth. These gains should in fact come from ...

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