How Bank Competition Influences Financial Stability

• Thesis title in Czech: Jak konkurence mezi bankami ovlivňuje finanční stabilitu
• Thesis title in English: How Bank Competition Influences Financial Stability
• Key words: Finanční stabilita, bankovní konkurence, dynamická GMM, the Arellano and Bond estimátor
• English key words: Financial Stability, Bank Competition, Dynamic GMM, the Arellano and Bond Estimator
• Academic year of topic announcement: 2016/2017
• Thesis type: diploma thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: prof. Roman Horváth, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 09.11.2016
• Date of assignment: 09.11.2016
• Date and time of defence: 08.02.2017 08:30
• Venue of defence: Opletalova - Opletalova 26, O206, Opletalova - místn. č. 206
• Date of electronic submission: 06.01.2017
• Date of proceeded defence: 08.02.2017
• Opponents: prof. PhDr. Petr Teplý, Ph.D.

References

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Preliminary scope of work

Tato práce zkoumá vztah mezi finanční stabilitou a bankovní konkurencí pomocí Arellano & Bond (1991) GMM modelu za použití panelových dat pro 205 zemí v letech 2000-2014. Zdrojem našich dat je nová, bohatší a aktualizovaná databáze The Global Financial Development Database dostupná na internetových stránkách World Bank. Díky specifikům této databáze můžeme použít nové kombinace měr finanční stability a bankovní konkurence a jsme schopni zkoumat jejich vztah více do hloubky. Výsledky ukazují pozitivní vztah mezi finanční stabilitou a bankovní konkurencí. Analýza také odhaluje, že záleží na tom, jaké míry finanční stability a bankovní konkurence jsou aplikovány. Také se ukazuje, že vztah mezi finanční stabilitou a bankovní konkurencí se v průběhu času nemění.

Preliminary scope of work in English

This paper investigates the link between financial stability and bank competition by means of the Arellano & Bond (1991) GMM model using annual panel data over the period 2000 – 2014 for 205 countries. Our data source is a new, richer and updated dataset The Global Financial Development Database available at World Bank. Due to the specifics of this dataset we are able to use new combinations of measures of financial stability and of bank competition and to study their relationship in greater depth. We find a positive link between financial stability and bank competition. Furthermore, our results provide evidence that it matters what measures of financial stability and bank competition we apply. Lastly, we ascertain that the relationship between financial stability and bank competition does not change over time.