CoChat
Sign Up
Cited by 1,137Banking stability, regulation, efficiencyEconomic theories and modelsMonetary Policy and Economic Impact

Competition and Financial Stability

Open access
Allen, Franklin, Gale, Douglas·2004·Journal of Money, Credit, and Banking
DOI 10.1353/mcb.2004.0038
Open this paper in CoChat — free accountOpen PDF

Abstract

Competition policy in the banking sector is complicated by the necessity of maintaining financial stability.Greater competition may be good for (static) efficiency, but bad for financial stability.From the point of view of welfare economics, the relevant question is: What are the efficient levels of competition and financial stability?We use a variety of models to address this question and find that different models provide different answers.The relationship between competition and stability is complex: sometimes competition increases stability.In addition, in a second-best world, concentration may be socially preferable to perfect competition and perfect stability may be socially undesirable.

Integrity signals

Registry

Crossref · 10.1353/mcb.2004.0038

Cites

Statistics

Recomputing p-values needs the paper’s full text.

Claims the paper makes

We couldn’t retrieve this paper’s full text, so its claims and self-check weren’t run. The registry and citation checks still apply.

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

  • Lack of competition and monopoly power characterise most banks in developing countries and enable them to charge higher spreads.

    “Lack of competition and monopoly power, which characterise most banks in developing countries, enable them to charge higher spreads (Allen & Gale 2004).”

    From Financial inclusion, bank competition and economic growth in Africa (2021) · cites this paper as Allen & Gale 2004

Cited by

Sorted by citations

Authors
Allen, F., & Gale, D.
Affiliations
  • Imperial College London (GB)
  • New York University (US)
ORCID
Venue
Journal of Money, Credit, and Banking
Publisher
Project MUSE
Published
2004
Volume
36
Issue
3b
Pages
453-480
ISSN
  • 0022-2879 (ISSN-L)
  • 1538-4616
DOI
10.1353/mcb.2004.0038
OpenAlex
W2133650212
Cited by
1,137
References
0
Citations by year
2026: 38 · 2025: 52 · 2024: 54 · 2023: 64 · 2022: 72 · 2021: 95 · 2020: 70 · 2019: 68 · 2018: 49 · 2017: 71 · 2016: 53 · 2015: 75 · 2014: 61 · 2013: 72 · 2012: 41
FWCI
35.26
Type
journal article
Language
en
Open access
Locations
  • Journal of money credit and banking (publishedVersion)
  • Faculty Digital Archive (New York University Florence) (submittedVersion)
  • Project Muse (Johns Hopkins University) (submittedVersion)
  • SSRN Electronic Journal (submittedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
Keywords
competition policy, financial stability, banking sector, market concentration, welfare economics, second best

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review