The effects of the structure of banking market and funding strategy on risk and return

摘要: Abstract This paper analyses the implications of bank market power and funding structure for risk return. It employs a sample 978 banks in 55 countries leading up to 2008 financial crisis test two related hypotheses. First, competition reduces internal capital as level increases when use diversify into non-interest income generating activities. Building on these results employing various specifications Lerner index strategy, second suggests that relatively low insolvency among emerging developing during 2000–2007 is attributed high degree internally generated funds.