The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems
<p>The purpose of this paper is investigate how bank capitalization affects the relationship between competition and bank stability in dual banking systems. Using bank-level and country-level data from 17 countries over the period 2000–2019, the evidence shows a U-shaped relationship between c...
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2023
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| _version_ | 1864513528774262784 |
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| author | Indria Ernaningsih (17871056) |
| author2 | Houcem Smaoui (17871059) Akram Temimi (17871062) |
| author2_role | author author |
| author_facet | Indria Ernaningsih (17871056) Houcem Smaoui (17871059) Akram Temimi (17871062) |
| author_role | author |
| dc.creator.none.fl_str_mv | Indria Ernaningsih (17871056) Houcem Smaoui (17871059) Akram Temimi (17871062) |
| dc.date.none.fl_str_mv | 2023-12-01T00:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1016/j.pacfin.2023.102152 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/The_effect_of_capitalization_on_the_competition-stability_Nexus_Evidence_from_dual_banking_systems/25108472 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Commerce, management, tourism and services Banking, finance and investment Economics Econometrics Bank competition Bank capitalization Bank stability Islamic banking |
| dc.title.none.fl_str_mv | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p>The purpose of this paper is investigate how bank capitalization affects the relationship between competition and bank stability in dual banking systems. Using bank-level and country-level data from 17 countries over the period 2000–2019, the evidence shows a U-shaped relationship between competition and bank stability highlighting the dual importance of the franchise value and the risk-shifting paradigms in dual banking systems. The comparative analysis between conventional banks (CBs, hereafter) and Islamic banks (IBs, hereafter) reveals that, compared to CBs, competition is more detrimental to the stability of IBs. Importantly, our analysis reveals that higher bank capitalization moderates the negative effect of competition on bank stability and that the magnitude of the effect is similar between CBs and IBs.</p><h2>Other Information</h2> <p> Published in: Pacific-Basin Finance Journal<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.pacfin.2023.102152" target="_blank">https://dx.doi.org/10.1016/j.pacfin.2023.102152</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_1496889b6a9e7a34b57a3520b56fb1d5 |
| identifier_str_mv | 10.1016/j.pacfin.2023.102152 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/25108472 |
| publishDate | 2023 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systemsIndria Ernaningsih (17871056)Houcem Smaoui (17871059)Akram Temimi (17871062)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsEconometricsBank competitionBank capitalizationBank stabilityIslamic banking<p>The purpose of this paper is investigate how bank capitalization affects the relationship between competition and bank stability in dual banking systems. Using bank-level and country-level data from 17 countries over the period 2000–2019, the evidence shows a U-shaped relationship between competition and bank stability highlighting the dual importance of the franchise value and the risk-shifting paradigms in dual banking systems. The comparative analysis between conventional banks (CBs, hereafter) and Islamic banks (IBs, hereafter) reveals that, compared to CBs, competition is more detrimental to the stability of IBs. Importantly, our analysis reveals that higher bank capitalization moderates the negative effect of competition on bank stability and that the magnitude of the effect is similar between CBs and IBs.</p><h2>Other Information</h2> <p> Published in: Pacific-Basin Finance Journal<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.pacfin.2023.102152" target="_blank">https://dx.doi.org/10.1016/j.pacfin.2023.102152</a></p>2023-12-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.pacfin.2023.102152https://figshare.com/articles/journal_contribution/The_effect_of_capitalization_on_the_competition-stability_Nexus_Evidence_from_dual_banking_systems/25108472CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/251084722023-12-01T00:00:00Z |
| spellingShingle | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems Indria Ernaningsih (17871056) Commerce, management, tourism and services Banking, finance and investment Economics Econometrics Bank competition Bank capitalization Bank stability Islamic banking |
| status_str | publishedVersion |
| title | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems |
| title_full | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems |
| title_fullStr | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems |
| title_full_unstemmed | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems |
| title_short | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems |
| title_sort | The effect of capitalization on the competition-stability Nexus: Evidence from dual banking systems |
| topic | Commerce, management, tourism and services Banking, finance and investment Economics Econometrics Bank competition Bank capitalization Bank stability Islamic banking |