Regulations, Competition and Bank Risk-Taking in Transition Countries

摘要: This study investigates the relationship between regulations, competition, and risk-taking in Central Eastern European banking sectors 1994 2005. We build an empirical model that employs a non-structural measure of various proxies for regulations both static dynamic frameworks. find no clear-cut positive conventional measures sector regulatory reform competition. In contrast, more specific features relate to restrictions on bank activities, capital requirements official supervisory power play important role shaping also market is negatively associated with behaviour banks, while seem be effective devices monitoring as they increase equity ratios decrease credit risk. Finally, incentives tools enhance self-monitoring promote credit-risk reduction.