BANKING COMPETITION, CAPITAL ACCUMULATION, AND INTEREST ON RESERVES.

In recent years, the increased concentration of activity in the banking system has received much attention. In addition, numerous central banks have expanded their range of policy tools to include paying interest on reserves. The objective of this paper is to study the implications of concentration...

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Publicado en:Economic Inquiry Vol. 59; no. 2; pp. 671 - 696
Autores principales: Ghossoub, Edgar A., Reed, Robert R.
Formato: Artículo
Publicado: Wiley-Blackwell Apr2021
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: BANKING COMPETITION, CAPITAL ACCUMULATION, AND INTEREST ON RESERVES.
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          Ghossoub, Edgar A.
          Reed, Robert R.
        affil:
          Department of Economics, University of Texas at San Antonio, University of Texas at San Antonio, San Antonio TX, 782449, USA
          Department of Economics, Finance, and Legal Studies, University of Alabama, Tuscaloosa AL, 35487, USA
      su:
        Banking industry
        Social services
        Interest rates
        Central banking industry
      sug:
        subj:
          Banking industry
          Social services
          Commercial Banking
          Other Depository Credit Intermediation
          Personal and commercial banking industry
          Savings Institutions
          Monetary Authorities-Central Bank
          Other Individual and Family Services
          Interest rates
          Central banking industry
      ab: In recent years, the increased concentration of activity in the banking system has received much attention. In addition, numerous central banks have expanded their range of policy tools to include paying interest on reserves. The objective of this paper is to study the implications of concentration in the banking sector and the effects of various reserve policies. Changes in the competitive structure affect investment, risk‐sharing, and social welfare. In general, perfect competition should not be a regulatory goal for the banking system. Moreover, it is generally not optimal to pay the same interest rate on required reserves as excess reserves.
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    language: English
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