Relationship between bank competition and stability: the case of the UK

There is no consensus in theoretical and empirical studies about the relationship between bank competition and stability. This research aims to investigate the relationship between bank competition and stability in the UK. The analysis has been done on a large sample of UK banks for the period 2004–...

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Main Authors: Alau Zhanbolatova, Sayabek Ziyadin, Kairat Zhumanov, Almagul Jumabekova
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2018-03-01
Series:Banks and Bank Systems
Subjects:
Online Access:https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10162/BBS_2018_01_Zhanbolatova.pdf
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spelling doaj-1a869d53601f461a96662097d99567b82020-11-25T01:44:37ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742018-03-011319811410.21511/bbs.13(1).2018.1010162Relationship between bank competition and stability: the case of the UKAlau Zhanbolatova0Sayabek Ziyadin1Kairat Zhumanov2Almagul Jumabekova3Deputy Head of the Research Center for Anti-Corruption Academy of Public Administration under the President of the Republic of KazakhstanDoctor of Economics, Professor, Director of the Center for Economic Research, al-Farabi Kazakh National UniversityDoctoral Student, al-Farabi Kazakh National UniversityPh.D. (Economics), Senior Lecturer at Department of Finance, Kazakh University of Economics, Finance and International TradeThere is no consensus in theoretical and empirical studies about the relationship between bank competition and stability. This research aims to investigate the relationship between bank competition and stability in the UK. The analysis has been done on a large sample of UK banks for the period 2004–2014. There is quite contrasting evidence on the bank competition and bank soundness relationship. A unified framework has been developed to assess how different factors may make it more likely that the data favor one theory over another. The results suggest that in some cases a U-shaped relationship exists between bank competition and stability. Therefore the conclusion is that in order to protect the bank from different risk exposures a moderate level of bank competition is needed.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10162/BBS_2018_01_Zhanbolatova.pdfanalysisbankscompetitionrelationshipstability
collection DOAJ
language English
format Article
sources DOAJ
author Alau Zhanbolatova
Sayabek Ziyadin
Kairat Zhumanov
Almagul Jumabekova
spellingShingle Alau Zhanbolatova
Sayabek Ziyadin
Kairat Zhumanov
Almagul Jumabekova
Relationship between bank competition and stability: the case of the UK
Banks and Bank Systems
analysis
banks
competition
relationship
stability
author_facet Alau Zhanbolatova
Sayabek Ziyadin
Kairat Zhumanov
Almagul Jumabekova
author_sort Alau Zhanbolatova
title Relationship between bank competition and stability: the case of the UK
title_short Relationship between bank competition and stability: the case of the UK
title_full Relationship between bank competition and stability: the case of the UK
title_fullStr Relationship between bank competition and stability: the case of the UK
title_full_unstemmed Relationship between bank competition and stability: the case of the UK
title_sort relationship between bank competition and stability: the case of the uk
publisher LLC "CPC "Business Perspectives"
series Banks and Bank Systems
issn 1816-7403
1991-7074
publishDate 2018-03-01
description There is no consensus in theoretical and empirical studies about the relationship between bank competition and stability. This research aims to investigate the relationship between bank competition and stability in the UK. The analysis has been done on a large sample of UK banks for the period 2004–2014. There is quite contrasting evidence on the bank competition and bank soundness relationship. A unified framework has been developed to assess how different factors may make it more likely that the data favor one theory over another. The results suggest that in some cases a U-shaped relationship exists between bank competition and stability. Therefore the conclusion is that in order to protect the bank from different risk exposures a moderate level of bank competition is needed.
topic analysis
banks
competition
relationship
stability
url https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10162/BBS_2018_01_Zhanbolatova.pdf
work_keys_str_mv AT alauzhanbolatova relationshipbetweenbankcompetitionandstabilitythecaseoftheuk
AT sayabekziyadin relationshipbetweenbankcompetitionandstabilitythecaseoftheuk
AT kairatzhumanov relationshipbetweenbankcompetitionandstabilitythecaseoftheuk
AT almaguljumabekova relationshipbetweenbankcompetitionandstabilitythecaseoftheuk
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