19 November 2014Time: 1:00 - 2:00pm
Venue: Mile End Campus, Bancroft Building, Room 4.04/08
Speaker and affiliation
Davide Mare, University of Edinburgh Business School
Revisiting the competition-stability nexus in the euro area in the light of the Global Financial Crisis
We assess how market turmoil affects the relationship between market power and financial stability for the Eurozone banks over the period 2002-2012. We find that bank stability increases with market power and it implies a net cost for the social welfare after discounting the cost of government intervention. Moreover, we show that the measures undertaken by European governments to tackle the crisis are effective and increase individual bank soundness.