How competition influences bank failures
The Bank of Finland has conducted the first empirical investigation of the role of bank competition on the occurrence of bank failures.
The central bank's research analyses the issue using a large sample of data on Russian banks taken from 2001 to 2007 and employs the Lerner index as the metric of bank competition.
The Russian banking industry is seen as a unique example of an emerging market which has undergone a large number of bank failures during the last decade.
The findings clearly support
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