Bank Competition and Stability in the German Banking Market


Term Paper, 2021

36 Pages, Grade: 1,0


Abstract or Introduction

This paper addresses this issue and examines how bank competition affects their stability in the German market. 317 banks are investigated over the period from 2013 to 2019 using panel data estimation models such as the fixed effects and random effects estimator. In order to get a good understanding of the problem and to design an optimal model, the theoretical basics are explained beforehand. In addition, a detailed discussion of how bank competition and stability can be measured is included in the paper. A special focus will be placed on the Lerner index, the H-statistic, and the Boone indicator (competition measures) as well as the Z-score and non-performing loans (stability measures). Previous empirical results and a description of the main characteristics of the German banking market complete the preparation for the model design and implementation, which are discussed and explained in conclusion.

Details

Title
Bank Competition and Stability in the German Banking Market
Grade
1,0
Author
Year
2021
Pages
36
Catalog Number
V1274853
ISBN (eBook)
9783346721518
ISBN (Book)
9783346721525
Language
English
Keywords
Bank Competition, Bank Stability, Financial Stability, Charter Value Hypothesis, Risk-Shifting Effect, Correlated Default Risk, German Banking Sector, Lerner Index, Adjusted Lerner Index, Panzar-Rosse H-Statistic, H-Statistic, Boone Indicator, Z-Score, NPL, Non-Performing Loans, Random Effects, Fixed Effects
Quote paper
Franz Lennart Wunderlich (Author), 2021, Bank Competition and Stability in the German Banking Market, Munich, GRIN Verlag, https://www.grin.com/document/1274853

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