{"abstract":[{"lang":"eng","text":"Employing data on 3,943 banks from the EU-15 between 2013 and 2020, this paper empirically\r\nanalyzes the relationship between banking market consolidation, market power and banking stability,\r\nseparately for the loan and deposit market. We initially find that European banks follow a loss-leader pricing\r\nstrategy and cross-subsidize between both markets. In addition, it is observed that the empirical link\r\nbetween consolidation and market power is weak and thus, provokes diametral findings. Investigating the\r\nconditionality of consolidation and market power further reveals that, although the negative impact of\r\nconsolidation on stability is reduced, it is not fully crowded out, even if banks exhibit stronger market power\r\nin the loan and deposit market. Analyzing likely impact channels, different determinants of bank distress\r\nas well as effects from the lower bound and negative interest rates regime provides further important\r\ninsights."}],"date_updated":"2023-01-11T10:44:19Z","title":"The conditional impact of market consolidation and market power on banking stability – Evidence from Europe","department":[{"_id":"186"},{"_id":"188"}],"language":[{"iso":"eng"}],"year":"2022","publication_status":"unpublished","user_id":"21810","author":[{"full_name":"Herwald, Sarah","first_name":"Sarah","last_name":"Herwald"},{"last_name":"Voigt","full_name":"Voigt, Simone","first_name":"Simone"},{"full_name":"Uhde, André","first_name":"André","orcid":"https://orcid.org/0000-0002-8058-8857","id":"36049","last_name":"Uhde"}],"type":"working_paper","_id":"34802","status":"public","date_created":"2022-12-22T07:28:25Z","citation":{"ama":"Herwald S, Voigt S, Uhde A. <i>The Conditional Impact of Market Consolidation and Market Power on Banking Stability – Evidence from Europe</i>.","apa":"Herwald, S., Voigt, S., &#38; Uhde, A. (n.d.). <i>The conditional impact of market consolidation and market power on banking stability – Evidence from Europe</i>.","short":"S. Herwald, S. Voigt, A. Uhde, The Conditional Impact of Market Consolidation and Market Power on Banking Stability – Evidence from Europe, n.d.","bibtex":"@book{Herwald_Voigt_Uhde, title={The conditional impact of market consolidation and market power on banking stability – Evidence from Europe}, author={Herwald, Sarah and Voigt, Simone and Uhde, André} }","chicago":"Herwald, Sarah, Simone Voigt, and André Uhde. <i>The Conditional Impact of Market Consolidation and Market Power on Banking Stability – Evidence from Europe</i>, n.d.","mla":"Herwald, Sarah, et al. <i>The Conditional Impact of Market Consolidation and Market Power on Banking Stability – Evidence from Europe</i>.","ieee":"S. Herwald, S. Voigt, and A. Uhde, <i>The conditional impact of market consolidation and market power on banking stability – Evidence from Europe</i>. ."}}