The Effects of Banking Competition on Growth and Financial Stability: Evidence from the National Banking Era

被引:31
作者
Carlson, Mark [1 ]
Correia, Sergio [1 ]
Luck, Stephan [2 ]
机构
[1] Fed Reserve Syst, Board Governors, Washington, DC 20551 USA
[2] Fed Reserve Bank New York, New York, NY 10045 USA
关键词
REGRESSION DISCONTINUITY DESIGNS; UNITED-STATES; MARKET POWER; INDUSTRY STRUCTURE; RISK-TAKING; NEW-ENGLAND; CREDIT; ENTRY; INFORMATION; DEREGULATION;
D O I
10.1086/717453
中图分类号
F [经济];
学科分类号
02 ;
摘要
How does banking competition affect credit provision and growth? How does it affect financial stability? In order to identify the causal effects of banking competition, we exploit a discontinuity in bank capital requirements during the nineteenth-century National Banking Era. We show that banks operating in markets with lower entry barriers extend more credit. The resulting credit expansion, in turn, is associated with additional real economic activity. However, banks in markets with lower entry barriers also take more risk and are more likely to default. Thus, we provide causal evidence that banking competition can cause both growth and financial instability.
引用
收藏
页码:462 / 520
页数:59
相关论文
共 119 条
[1]  
Agarwal Sumit., 2012, 18609 NBER
[2]   Competition and financial stability [J].
Allen, F ;
Gale, D .
JOURNAL OF MONEY CREDIT AND BANKING, 2004, 36 (03) :453-480
[3]  
Alvarez RM, 2019, ELEM QUANT COMPUT ME, P1, DOI 10.1017/9781108684606
[4]   Bank Networks and Systemic Risk: Evidence from the National Banking Acts [J].
Anderson, Haelim ;
Paddrik, Mark ;
Wang, Jessie Jiaxu .
AMERICAN ECONOMIC REVIEW, 2019, 109 (09) :3125-3161
[5]   On the Use of Geographic Information Systems in Economic History: The American Transportation Revolution Revisited [J].
Atack, Jeremy .
JOURNAL OF ECONOMIC HISTORY, 2013, 73 (02) :313-338
[6]   Anticompetitive Effects of Common Ownership [J].
Azar, Jose ;
Schmalz, Martin C. ;
Tecu, Isabel .
JOURNAL OF FINANCE, 2018, 73 (04) :1513-1565
[7]  
Barnett GeorgeE., 1911, State Banks and Trust Companies Since the Passage of the National-Bank Act
[8]   Bank concentration, competition, and crises:: First results [J].
Beck, T ;
Demirgüç-Kunt, A ;
Levine, R .
JOURNAL OF BANKING & FINANCE, 2006, 30 (05) :1581-1603
[9]   Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States [J].
Beck, Thorsten ;
Levine, Ross ;
Levkov, Alexey .
JOURNAL OF FINANCE, 2010, 65 (05) :1637-1667
[10]   Financial frictions and employment during the Great Depression [J].
Benmelech, Efraim ;
Frydman, Carola ;
Papanikolaou, Dimitris .
JOURNAL OF FINANCIAL ECONOMICS, 2019, 133 (03) :541-563