Crises in competitive versus monopolistic banking systems

被引:71
|
作者
Boyd, JH [1 ]
De Nicoló, G
Smith, BD
机构
[1] Univ Minnesota, Carlson Sch Management, Dept Finance, Frederick R Chair Business & Governmental Relat, Minneapolis, MN 55455 USA
[2] Univ Texas, Dept Econ, Austin, TX 78712 USA
关键词
banking crisis (panic); monetary general equilibrium;
D O I
10.1353/mcb.2004.0041
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We study a monetary, general equilibrium economy in which banks exist because they provide inter-temporal insurance to risk-averse depositors. A "banking crisis" is defined as a case in which banks exhaust their reserve assets. This may (but need not) be associated with liquidation of a storage asset. When such liquidation does occur, the result is a real resource loss to the economy and we label this a "costly banking crisis." There is a monetary authority whose only policy choice is the long-run, constant rate of growth of the money supply, and thus the rate of inflation. Under different model specifications, the banking industry is either a monopoly bank or a competitive banking industry. It is shown that the probability of a banking crisis may be higher either under competition or under monopoly. This is shown to depend on the rate of inflation. In particular, if the nominal rate of interest (rate of inflation) is below (above) some threshold, a monopolistic banking system will always result in a higher (lower) crisis probability. Thus, the relative crisis probabilities under the two banking systems cannot be determined independently of the conduct of monetary policy. We further show that the probability of a costly banking crisis is always higher under competition than under monopoly. However, this apparent advantage of the monopoly banking is strictly due to the fact that it provides relatively less valuable inter-temporal insurance.
引用
收藏
页码:487 / 506
页数:20
相关论文
共 50 条
  • [41] Liquidity shortages and banking crises
    Diamond, DW
    Rajan, RG
    JOURNAL OF FINANCE, 2005, 60 (02): : 615 - 647
  • [42] A chronicle of the banking and currency crises
    Staikouras, SK
    APPLIED ECONOMICS LETTERS, 2004, 11 (14) : 873 - 878
  • [43] BANKING CRISES WITHOUT PANICS
    Baron, Matthew
    Verner, Emil
    Xiong, Wei
    QUARTERLY JOURNAL OF ECONOMICS, 2021, 136 (01): : 51 - 113
  • [44] BANKING CONCENTRATION AND FINANCIAL CRISES
    Barrell, Ray
    Karim, Dilruba
    NATIONAL INSTITUTE ECONOMIC REVIEW, 2020, 254 : R28 - R40
  • [45] Banking Crises in Historical Perspective
    Frydman, Carola
    Xu, Chenzi
    ANNUAL REVIEW OF FINANCIAL ECONOMICS, 2023, 15 : 265 - 290
  • [46] Commodity prices and banking crises
    Eberhardt, Markus
    Presbitero, Andrea F.
    JOURNAL OF INTERNATIONAL ECONOMICS, 2021, 131
  • [47] Banking on crises: Expensive lessons
    Caprio, G
    RESEARCH IN FINANCIAL SERVICES: PRIVATE AND PUBLIC POLICY, VOL 10 - 1998: BANK CRISES: CAUSES, ANALYSIS AND PREVENTION, 1998, 10 : 3 - 20
  • [48] Causes of banking crises revisited
    Klomp, Jeroen
    NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE, 2010, 21 (01): : 72 - 87
  • [49] Banking crises and human rights
    Gutmann, Jerg
    Pfaff, Katharina
    Voigt, Stefan
    APPLIED ECONOMICS LETTERS, 2017, 24 (19) : 1374 - 1377
  • [50] INCENTIVE TO INVENT IN COMPETITIVE AS CONTRASTED TO MONOPOLISTIC INDUSTRIES
    BOWMAN, W
    JOURNAL OF LAW & ECONOMICS, 1977, 20 (01): : 227 - 228