Bank risk, competition and bank connectedness with firms: A literature review
BADARAU, Cristina
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
LAPTEACRU, Ion
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
BADARAU, Cristina
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
LAPTEACRU, Ion
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
< Reduce
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
Language
EN
Article de revue
This item was published in
Research in International Business and Finance. 2020-01-01, vol. 51
English Abstract
The outbreak of the 2007–2009 financial crisis and of the European sovereign debt crisis again
raised questions about the vulnerability and the behaviour of banking institutions. The un-
conventional monetary policies ...Read more >
The outbreak of the 2007–2009 financial crisis and of the European sovereign debt crisis again
raised questions about the vulnerability and the behaviour of banking institutions. The un-
conventional monetary policies that followed have flattened the yield curve and created a low
interest rates environment. This can give rise to risk-taking behaviour from banks and can
therefore undermine the stability of the banking system with negative impact of the credit
supply, corporate investment and real economy. This article proposes a literature review on the
main determinants of bank lending and risk-taking decisions, going through the competition in
the banking market, the bank connectedness with firms and the role of monetary and banking
authorities. The systemic risk concept is also discussed as well as its drivers and potential
measures that should be monitored by prudential authorities in order to preserve financial sta-
bilityRead less <
Keywords
Bank risk
Systemic risk
English Keywords
Banking competition
Bank connectedness with firms