Bank Competition and Financial Stability

image of Bank Competition and Financial Stability

This report examines the interplay between banking competition and financial stability, taking into account the experiences in the recent global crisis and the policy response to it. The report has been prepared by members of the Directorate of Financial and Enterprise Affairs at the OECD in Paris for the G20 Workshop “The New Financial Landscape."


Competition in retail banking and financial stability

Studies exploring the complex interactions between competition and stability in retail and commercial banking come to the ambiguous conclusion that competition can be both good and bad for stability. Policy measures that strike an acceptable balance remain elusive.


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