SavedAdd your journal

Journals / Ekonomi Politika ve Finans Araştırmaları Dergisi / 2026 / Cilt: 10 Sayı: 3

Does Banking Competition Enhance or Mitigate Risk? New Evidence from OECD Countries

Bankacılıkta Rekabet Riski Arttırır mı Yoksa Azaltır mı? OECD Ülkelerinden Yeni Kanıtlar

Özlem Karadağ Ak(NECMETTİN ERBAKAN ÜNİVERSİTESİ)0000-0002-3761-081X
Şenol Babuşcu(BAŞKENT ÜNİVERSİTESİ)0000-0003-2870-6358
Adalet Hazar(BAŞKENT ÜNİVERSİTESİ)0000-0002-1483-8360
Pages
926–948
Publication Date
2025-09-30
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The results are also consistent with the ‘Non-linear’ view, revealing a non-linear relationship between competition and risk-taking behavior, which is formed according to banks' actions by the position they have taken according to the situation of the sector.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The primary aim of the study is to question the relationship between competition and risk-taking behavior in banks in recent years, when competition and risks have significantly differentiated, and to provide new evidence.
📊
Key Findings & Data:A comprehensive study was conducted with the data of 6,478 banks operating in OECD (Organization for Economic Co-operation and Development) member countries for the period 2013-2021.
💡
Conclusion & Impact:The results are also consistent with the ‘Non-linear’ view, revealing a non-linear relationship between competition and risk-taking behavior, which is formed according to banks' actions by the position they have taken according to the situation of the sector.
🔬Design:Araştırma Makalesi
📍Scope:2013-2021 Verileri
⚙️Variables:Rekabet · Risk Alma Davranışı · Finansal Gelişme

Abstract

The primary aim of the study is to question the relationship between competition and risk-taking behavior in banks in recent years, when competition and risks have significantly differentiated, and to provide new evidence. In addition, it is also aimed to question the impact of the level of financial development on the relationship between competition and risk. In this context, the study is the first of its kind in the literature. A comprehensive study was conducted with the data of 6,478 banks operating in OECD (Organization for Economic Co-operation and Development) member countries for the period 2013-2021. Panel data analysis results obtained from the nexus between competition and risk-taking behavior are found to be consistent with the ‘Competition-stability’ view. The results are also consistent with the ‘Non-linear’ view, revealing a non-linear relationship between competition and risk-taking behavior, which is formed according to banks' actions by the position they have taken according to the situation of the sector.

Özet

Çalışmanın temel amacı, rekabet ve riskin önemli ölçüde farklılaştığı son yıllarda bankalarda rekabet ile risk alma davranışı arasındaki ilişkiyi sorgulamak ve yeni kanıtlar sunmaktır. Ayrıca, finansal gelişmişlik düzeyinin rekabet ve risk arasındaki ilişkiye etkisinin sorgulanması da amaçlanmaktadır. Bu bağlamda çalışma literatürde ilk olma özelliği taşımaktadır. OECD (Ekonomik İşbirliği ve Kalkınma Örgütü) üye ülkelerinde faaliyet gösteren 6,478 bankanın 2013-2021 dönemi verileri ile kapsamlı bir çalışma yürütülmüştür. Analiz sonuçlarına göre, rekabet ile risk alma davranışı arasında elde edilen bulgular, ‘Rekabet-istikrar’ görüşü ile tutarlıdır. Sonuçlar ayrıca ‘Doğrusal olmayan’ görüş ile de tutarlı olup, bankaların sektörün durumuna göre aldıkları pozisyona göre oluşan rekabet ile risk alma davranışı arasında doğrusal olmayan bir ilişki olduğunu ortaya koymaktadır.

🔖

Cite This Article

Ak, Ö. K., Babuşcu, Ş., Hazar, A. (2025). Does Banking Competition Enhance or Mitigate Risk? New Evidence from OECD Countries. Ekonomi Politika ve Finans Araştırmaları Dergisi, Cilt: 10 Sayı: 3, 926–948. https://doi.org/10.30784/epfad.1695468

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (98)

  1. Abaidoo, R. and Agyapong, E.K. (2022). Financial development and institutional quality among emerging economies. Journal of Economics and Development, 24(3), 198-216. https://doi.org/10.1108/JED-08-2021-0135
  2. Abdesslem, R.B., Dabbou, H. and Gallali, M.I. (2023). The impact of market concentration on bank risk-taking: evidence from a panel threshold model. Journal of the Knowledge Economy, 14(4), 4170-4194. https://doi.org/10.1007/s13132-022-01028-4
  3. Abdmoulah, W. (2021). Competition and financial institutions and markets development: A dynamic panel data analysis. Journal of Financial Economic Policy, 13(5), 539-564. https://doi.org/10.1108/JFEP-05-2020-0106
  4. Ahi, K. and Laidroo, L. (2019). Banking market competition in Europe - Financial stability or fragility enhancing. Quantitative Finance and Economics, 3(2), 257-285. https://doi.org/10.3934/QFE.2019.2.257
  5. Ajide, F.M. and Ojeyinka, T.A. (2022). Financial development and entrepreneurship: Insights from Africa. Journal of Financial Regulation and Compliance, 30(5), 596-617. https://doi.org/10.1108/JFRC-09-2021-0079
  6. Akande, J.O., Kwenda, F. and Ehalaiye, D. (2018). Competition and commercial banks risk-taking: Evidence from Sub-Saharan Africa region. Applied Economics, 50(44), 4774-4787. https://doi.org/10.1080/00036846.2018.1466995
  7. Albaity, M., Mallek, R.S. and Noman, A.H.M. (2019). Competition and bank stability in the MENA region: The moderating effect of Islamic versus conventional banks. Emerging Markets Review, 38, 310-325. https://doi.org/10.1016/j.ememar.2019.01.003
  8. Albaity, M., Mallek, R.S., Al-Tamimi, H.A.H. and Noman, A.H.M. (2021). Does competition lead to financial stability or financial fragility for Islamic and conventional banks? Evidence from the GCC countries. International Journal of Finance and Economics, 26(3), 4706-4722. https://doi.org/10.1002/ijfe.2037
  9. Allen, F. and Gale, D. (2004). Competition and financial stability. Journal of Money, Credit and Banking, 36(3), 453-480. Retrieved from https://www.jstor.org/
  10. Anginer, D., Demirgüç-Kunt, A. and Zhu, M. (2012). How does bank competition affect systemic stability? (World Bank Policy Research Working Paper No. 5981). Retrieved from https://papers.ssrn.com/
  11. Badarau, C. and Lapteacru, I. (2020). Bank risk, competition and bank connectedness with firms: A literature review. Research in International Business and Finance, 51, 101017. https://doi.org/10.1016/j.ribaf.2019.03.004
  12. Bahri, F. and Hamza, T. (2020). The impact of market power on bank risk-taking: An empirical investigation. Journal of the Knowledge Economy, 11(3), 1198-1233. https://doi.org/10.1007/s13132-019-0584-y
  13. Balestra, P. and Nerlove, M. (1966). Pooling cross section and time series data in the estimation of a dynamic model: The demand for natural gas. Econometrica: Journal of the Econometric Society, 34(3), 585-612. https://doi.org/10.2307/1909771
  14. Baltagi, B.H. and Wu, P.X., 1999. Unequally spaced panel data regressions with AR(1) disturbances. Econometric Theory, 15, 814–823. https://doi.org/10.1017/S0266466699156020
  15. Bank Focus. (2024). Financial data databases [Dataset]. Retrieved from https://bankfocus.bvdinfo.com
  16. Banyen, K. (2021). Financial integration, competition and bank risk-taking behavior. Journal of Economic Integration, 36(2), 282-307. https://doi.org/10.11130/jei.2021.36.2.282
  17. Beck, T., De Jonghe, O. and Schepens, G. (2013). Bank competition and stability: Cross-country heterogeneity. Journal of Financial Intermediation, 22(2), 218-244. https://doi.org/10.1016/j.jfi.2012.07.001
  18. Berger, A.N., Klapper, L.F. and Turk-Ariss, R. (2017). Bank competition and financial stability. In J.A. Bikker and L. Spierdijk (Eds.), Handbook of competition in banking and finance (pp. 185-204). UK: Edward Elgar Publishing.
  19. Bhargava, A., Franzini, L. and Narendranathan, W. (1982). Serial correlation and the fixed effects model. The Review of Economic Studies, 49(4), 533-549. https://doi.org/10.2307/2297285
  20. Borauzima, L.M. and Muller, A. (2023). Bank risk-taking and competition in developing banking markets: Does efficiency level matter? Evidence from Africa. Emerging Markets Review, 55, 100963. https://doi.org/10.1016/j.ememar.2022.100963
  21. Boyd, J.H. and De Nicolo, G. (2005). The theory of bank risk taking and competition revisited. The Journal of Finance, 60(3), 1329-1343. https://doi.org/10.1111/j.1540-6261.2005.00763.x
  22. Căpraru, B., Ihnatov, I. and Pintilie, N.L. (2021). Bank competition and risk-taking in the European Union: Evidence of a non-linear relationship. Economic Annals, 66(230), 35-65. https://doi.org/10.2298/EKA2130035C
  23. Carletti, E. (2008). Competition and regulation in banking. In A.V. Thakor and W.A. Boot (Eds.), Handbook of financial intermediation and banking (pp. 449-482). Holland: Elsevier.
  24. Chinoda, T. and Kapingura, F.M. (2023). The impact of digital financial inclusion and bank competition on bank stability in Sub-Saharan Africa. Economies, 11(1), 15. https://doi.org/10.3390/economies11010015
  25. Čihák, M., Demirgüç-Kunt, A., Feyen, E. and Levine, R. (2012). Benchmarking financial systems around the world (World Bank Policy Research Working Paper No. 6175). Retrieved from https://papers.ssrn.com/
  26. Claessens, S. and Laeven, L. (2004). What drives bank competition? Some international evidence. Journal of Money, Credit and Banking, 36(3), 563-583. https://www.jstor.org/
  27. Clark, E., Mare, D.S. and Radić, N. (2018). Cooperative banks: What do we know about competition and risk preferences? Journal of International Financial Markets, Institutions and Money, 52, 90-101. https://doi.org/10.1016/j.intfin.2017.09.008
  28. Cuestas, J.C., Lucotte, Y. and Reigl, N. (2020). Banking sector concentration, competition and financial stability: The case of the Baltic countries. Post-Communist Economies, 32(2), 215-249. https://doi.org/10.1080/14631377.2019.1640981
  29. Danisman, G.O. and Demirel, P. (2019). Bank risk-taking in developed countries: The influence of market power and bank regulations. Journal of International Financial Markets, Institutions and Money, 59, 202-217. https://doi.org/10.1016/j.intfin.2018.12.007
  30. De Moraes, C.O., Antunes, J.A.P. and Coutinho, M.S. (2021). What is the effect of banking concentration and competition on financial development? An international assessment. Journal of Economic Studies, 48(6), 1162-1176. https://doi.org/10.1108/JES-03-2020-0140
  31. El Moussawi, C. and Mansour, R. (2022). Competition, cost efficiency and stability of banks in the MENA region. The Quarterly Review of Economics and Finance, 84, 143-170. https://doi.org/10.1016/j.qref.2021.12.005
  32. Ernaningsih, I., Smaoui, H. and Salah, I.B. (2024). Competition, regulation, and systemic risk in dual banking systems. International Review of Economics and Finance, 93, 1087-1103. https://doi.org/10.1016/j.iref.2024.03.078
  33. Feghali, K., Mora, N. and Nassif, P. (2021). Financial inclusion, bank market structure, and financial stability: International evidence. The Quarterly Review of Economics and Finance, 80, 236-257. https://doi.org/10.1016/j.qref.2021.01.007
  34. Fiordelisi, F. and Mare, D.S. (2014). Competition and financial stability in European cooperative banks. Journal of International Money and Finance, 45, 1-16. https://doi.org/10.1016/j.jimonfin.2014.02.008
  35. Fu, X.M., Lin, Y.R. and Molyneux, P. (2014). Bank competition and financial stability in Asia Pacific. Journal of Banking and Finance, 38, 64-77. https://doi.org/10.1016/j.jbankfin.2013.09.012
  36. Goetz, M.R. (2018). Competition and bank stability. Journal of Financial Intermediation, 35, 57-69. https://doi.org/10.1016/j.jfi.2017.06.001
  37. González, L.O., Razia, A., Búa, M.V. and Sestayo, R.L. (2017). Competition, concentration and risk taking in Banking sector of MENA countries. Research in International Business and Finance, 42, 591-604. https://doi.org/10.1016/j.ribaf.2017.07.004
  38. Gupta, A.D. and Istiaque, K.M. (2023). Impact of size and market competition on risk-taking and profitability of GCC bank. An empirical study through GMM estimator. International Journal of Smart Business and Technology, 11(1), 1-28. https://doi.org/10.21742/IJSBT.2023.11.1.01
  39. Gupta, A.D. and Moudud-Ul-Huq, S. (2020). Do competition and revenue diversification have significant effect on risk-taking? Empirical evidence from BRICS banks. International Journal of Financial Engineering, 7(01), 2050007. https://doi.org/10.1142/S2424786320500073
  40. Hamadi, H. and Awdeh, A. (2020). Banking concentration and financial development in the MENA region. International Journal of Islamic and Middle Eastern Finance and Management, 13(4), 675-689. https://doi.org/10.1108/IMEFM-03-2019-0097
  41. Hao, J. and Zheng, K. (2021). Effect of the equity capital ratio on the relationship between competition and bank risk-taking behavior. The Review of Corporate Finance Studies, 10(4), 813-855. https://doi.org/10.1093/rcfs/cfab009
  42. Hassan, M.K., Ijaz, M.S. and Khan, M.H. (2021). Bank competition–stability relations in Pakistan: A comparison between Islamic and conventional banks. International Journal of Business and Society, 22(2), 532-545. https://doi.org/10.33736/ijbs.3733.2021
  43. Hellmann, T.F., Murdock, K.C. and Stiglitz, J.E. (2000). Liberalization, moral hazard in banking, and prudential regulation: Are capital requirements enough? American Economic Review, 90(1), 147-165. https://doi.org/10.1257/aer.90.1.147
  44. Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. The Stata Journal, 7(3), 281-312. https://doi.org/10.1177/1536867X0700700301
  45. Hsiao, C. (2007). Panel data analysis - advantages and challenges. Test, 16(1), 1-22. https://doi.org/10.1007/s11749-007-0046-x
  46. Hussain, M. and Bashir, U. (2020). Risk-competition nexus: Evidence from Chinese banking industry. Asia Pacific Management Review, 25(1), 23-37. https://doi.org/10.1016/j.apmrv.2019.06.001
  47. IMF. (2024). Financial development index [Dataset]. Retrieved from https://legacydata.imf.org/
  48. Jeon, J.Q. and Lim, K.K. (2013). Bank competition and financial stability: A comparison of commercial banks and mutual savings banks in Korea. Pacific-Basin Finance Journal, 25, 253-272. https://doi.org/10.1016/j.pacfin.2013.10.003
  49. Jiang, L., Levine, R. and Lin, C. (2023). Does competition affect bank risk? Journal of Money, Credit and Banking, 55(5), 1043-1076. https://doi.org/10.1111/jmcb.12990
  50. Jiménez, G., Lopez, J.A. and Saurina, J. (2013). How does competition affect bank risk-taking? Journal of Financial Stability, 9(2), 185-195. https://doi.org/10.1016/j.jfs.2013.02.004
  51. Kabir, M.N. and Worthington, A.C. (2017). The ‘competition–stability/fragility’nexus: A comparative analysis of Islamic and conventional banks. International Review of Financial Analysis, 50, 111-128. https://doi.org/10.1016/j.irfa.2017.02.006
  52. Kasman, A. and Carvallo, O. (2014). Financial stability, competition and efficiency in Latin American and Caribbean banking. Journal of Applied Economics, 17(2), 301-324. https://doi.org/10.1016/S1514-0326(14)60014-3
  53. Kasman, S. and Kasman, A. (2015). Bank competition, concentration and financial stability in the Turkish banking industry. Economic Systems, 39(3), 502-517. https://doi.org/10.1016/j.ecosys.2014.12.003
  54. Keeley, M.C. (1990). Deposit insurance, risk and market power in banking. American Economic Review, 80, 1183–1200. Retrieved from https://www.jstor.org/
  55. Khan, H.H. (2022). Bank competition, financial development and macroeconomic stability: Empirical evidence from emerging economies. Economic Systems, 46(4), 101022. https://doi.org/10.1016/j.ecosys.2022.101022
  56. Khan, M.A. and Ahmad, W. (2023). Competition, concentration and default-risk in the Indian banking industry. Journal of Economic Studies, 50(2), 268-282. https://doi.org/10.1108/JES-07-2021-0355
  57. Khan, S.M. and Akhtar, S. (2024). The ramification of competition and concentration on bank risk-taking behavior and stability: Corroboration from South Asian Association for Regional Cooperation. Journal of Economic and Administrative Sciences, Advance online publication. https://doi.org/10.1108/JEAS-05-2023-0132
  58. Kočišová, K. (2020). Competition and stability in the European global systemically important banks. Ekonomický Časopis, 68(05), 431-454. Retrieved from https://www.ceeol.com/
  59. Kögel, T. (2004). Did the association between fertility and female employment within OECD countries really change its sign? Journal of Population Economics, 17, 45-65. https://doi.org/10.1007/s00148-003-0180-z
  60. Leroy, A. and Lucotte, Y. (2017). Is there a competition-stability trade-off in European banking? Journal of International Financial Markets, Institutions and Money, 46, 199-215. https://doi.org/10.1016/j.intfin.2016.08.009
  61. Li, S. (2019). Banking sector reform, competition, and bank stability: An empirical analysis of transition countries. Emerging Markets Finance and Trade, 55(13), 3069-3093. https://doi.org/10.1080/1540496X.2018.1540349
  62. Li, S. (2021). Quality of bank capital, competition, and risk-taking: Some international evidence. Emerging Markets Finance and Trade, 57(12), 3455-3488. https://doi.org/10.1080/1540496X.2019.1696189
  63. López-Penabad, M.C., Iglesias-Casal, A. and Neto, J.F.S. (2021). Competition and financial stability in the European listed banks. Sage Open, 11(3), 21582440211032645. https://doi.org/10.1177/21582440211032645
  64. Louhichi, A., Louati, S. and Boujelbene, Y. (2019). Market-power, stability and risk-taking: An analysis surrounding the riba-free banking. Review of Accounting and Finance, 18(1), 2-24. https://doi.org/10.1108/RAF-07-2016-0114
  65. Maji, S.G. and Hazarika, P. (2018). Capital regulation, competition and risk-taking behavior of Indian banks in a simultaneous approach. Managerial Finance, 44(4), 459-477. https://doi.org/10.1108/MF-09-2017-0340
  66. Marcus, A.J. (1984). Deregulation and bank financial policy. Journal of Banking and Finance, 8(4), 557-565. https://doi.org/10.1016/S0378-4266(84)80046-1
  67. Martinez-Miera, D. and Repullo, R. (2010). Does competition reduce the risk of bank failure? The Review of Financial Studies, 23(10), 3638-3664. https://doi.org/10.1093/rfs/hhq057
  68. Mateev, M., Moudud-Ul-Huq, S. and Sahyouni, A. (2022). Regulation, banking competition and risk-taking behavior in the MENA region: Policy implications for Islamic banks. Journal of Islamic Accounting and Business Research, 13(2), 297-337. https://doi.org/10.1108/JIABR-01-2021-0009
  69. Mia, M.A. (2018). Evolution of market concentration and competition in the microfinance industry of Bangladesh. International Journal of Social Economics, 45(6), 989-1007. https://doi.org/10.1108/IJSE-10-2016-0281
  70. Miklaszewska, E., Kil, K. and Idzik, M. (2021). How the COVID-19 pandemic affects bank risks and returns: Evidence from EU members in Central, Eastern, and Northern Europe. Risks, 9(10), 180. https://doi.org/10.3390/risks9100180
  71. Moudud-Ul-Huq, S. (2020). Does bank competition matter for performance and risk-taking? Empirical evidence from BRICS countries. International Journal of Emerging Markets, 16(3), 409-447. https://doi.org/10.1108/IJOEM-03-2019-0197
  72. Moudud-Ul-Huq, S., Biswas, T., Abdul Halim, M., Mateev, M., Yousaf, I. and Abedin, M.Z. (2022). The effects of bank competition, financial stability and ownership structure: Evidence from the Middle East and North African (MENA) countries. International Journal of Islamic and Middle Eastern Finance and Management, 15(4), 717-738. https://doi.org/10.1108/IMEFM-05-2020-0214
  73. Nguyen, T.H. and Tran, H.G. (2020). Competition, risk and profitability in banking system—Evidence from Vietnam. The Singapore Economic Review, 65(06), 1491-1505. https://doi.org/10.1142/S0217590820500137
  74. Noman, A.H.M., Gee, C.S. and Isa, C.R. (2018). Does bank regulation matter on the relationship between competition and financial stability? Evidence from Southeast Asian countries. Pacific-Basin Finance Journal, 48, 144-161. https://doi.org/10.1016/j.pacfin.2018.02.001
  75. Noman, A.H.M., Isa, C.R., Mia, M.A. and Sok-Gee, C. (2021). Impact of activity restrictions on risk taking of banks: does competition matter during crisis? Journal of Financial Regulation and Compliance, 29(1), 79-103. https://doi.org/10.1108/JFRC-07-2019-0095
  76. Nyangu, M., Marwa, N., Fanta, A. and Minja, E.J. (2022). Bank concentration, competition and financial stability nexus in the East African Community: is there a trade-off? Cogent Economics and Finance, 10(1), 2082026. https://doi.org/10.1080/23322039.2022.2082026
  77. OECD. (2024). Nominal gross domestic product [Dataset]. Retrieved from https://www.oecd.org/
  78. Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels (Cesifo Working Paper No. 1229). Retrieved from https://www.econstor.eu/bitstream/10419/18868/1/cesifo1
  79. Pesaran, M.H. (2012). On the interpretation of panel unit root tests. Economics Letters, 116(3), 545-546. https://doi.org/10.1016/j.econlet.2012.04.049
  80. Phan, H.T., Anwar, S., Alexander, W.R.J. and Phan, H.T.M. (2019). Competition, efficiency and stability: An empirical study of East Asian commercial banks. The North American Journal of Economics and Finance, 50, 100990. https://doi.org/10.1016/j.najef.2019.100990
  81. Rakshit, B. and Bardhan, S. (2020). Does bank competition enhance or hinder financial stability? Evidence from Indian banking. Journal of Central Banking Theory and Practice, 9(s1), 75-102. https://doi.org/10.2478/jcbtp-2020-0024
  82. Saha, M. and Dutta, K.D. (2021). Nexus of financial inclusion, competition, concentration and financial stability: Cross-country empirical evidence. Competitiveness Review: An International Business Journal, 31(4), 669-692. https://doi.org/10.1108/CR-12-2019-0136
  83. Saif-Alyousfi, A.Y., Saha, A. and Md-Rus, R. (2020). The impact of bank competition and concentration on bank risk-taking behavior and stability: Evidence from GCC countries. The North American Journal of Economics and Finance, 51, 100867. https://doi.org/10.1016/j.najef.2018.10.015
  84. Seetaram, N. and Petit, S. (2012). Panel data analysis. In L. Dwyer, A. Gill, N. Seetaram (Eds.), Handbook of research methods in tourism: Quantitative and qualitative approaches (pp. 127-145). UK: Edward Elgar Publishing.
  85. Soedarmono, W. and Tarazi, A. (2016). Competition, financial intermediation, and riskiness of banks: Evidence from the Asia-Pacific region. Emerging Markets Finance and Trade, 52(4), 961-974. https://doi.org/10.1080/1540496X.2015.1018039
  86. Srivastava, B., Singh, S. and Jain, S. (2023). Bank competition, risk-taking and financial stability: Insights from an emerging economy. Competitiveness Review: An International Business Journal, 33(5), 959-992. https://doi.org/10.1108/CR-10-2021-0143
  87. Svirydzenka, K. (2016). Introducing a new broad-based index of financial development (IMF Working Paper No. 16/5). Retrieved from https://coilink.org/20.500.12592/47gjpq
  88. Tabak, B.M., Fazio, D.M. and Cajueiro, D.O. (2012). The relationship between banking market competition and risk-taking: Do size and capitalization matter? Journal of Banking and Finance, 36(12), 3366-3381. https://doi.org/10.1016/j.jbankfin.2012.07.022
  89. Tabak, B.M., Gomes, G.M. and da Silva Medeiros Jr, M. (2015). The impact of market power at bank level in risk-taking: The Brazilian case. International Review of Financial Analysis, 40, 154-165. https://doi.org/10.1016/j.irfa.2015.05.014
  90. Tongurai, J. and Vithessonthi, C. (2020). Bank regulations, bank competition and bank risk-taking: Evidence from Japan. Journal of Multinational Financial Management, 56, 100638. https://doi.org/10.1016/j.mulfin.2020.100638
  91. Uzar, U., Eyuboglu, K., Akdag, S. and Alola, A.A. (2023). Causal inference of financial development and institutional quality across the globe. Physica A: Statistical Mechanics and its Applications, 626, 129035. https://doi.org/10.1016/j.physa.2023.129035
  92. Verma, D. and Chakarwarty, Y. (2024). Impact of bank competition on financial stability-a study on Indian banks. Competitiveness Review: An International Business Journal, 34(2), 277-304. https://doi.org/10.1108/CR-07-2022-0102
  93. Wahinya, P.W., Ondiba, R.O. and Kariuki, P.W.O. (2023). Competition, risk-taking behavior and stability of commercial banks: Evidence from Kenya. African Journal of Economic and Management Studies, 14(4), 600-614. https://doi.org/10.1108/AJEMS-03-2022-0123
  94. Wang, W., Miao, L., Hu, H. and Ma, J. (2024). Market competition, non-interest income and risk-taking of small and medium-sized banks. Emerging Markets Finance and Trade, 2646-2664. https://doi.org/10.1080/1540496X.2024.2325062
  95. World Bank. (2024). The share of assets of the five largest banks [Dataset]. Retrieved from https://data.worldbank.org/
  96. Wu, J., Guo, M., Chen, M. and Jeon, B.N. (2019). Market power and risk-taking of banks: Some semiparametric evidence from emerging economies. Emerging Markets Review, 41, 100630. https://doi.org/10.1016/j.ememar.2019.100630
  97. Yaffee, R. (2003). A primer for panel data analysis. Connect: Information Technology at NYU, 8(3), 1-11. Retrieved from https://abenkhalifa.wordpress.com/
  98. Zoghlami, F. and Bouchemia, Y. (2021). Competition in the banking industry, is it beneficial? Evidence from MENA region. Journal of Banking Regulation, 22, 169-179. https://doi.org/10.1057/s41261-020-00135-z