Competição e estabilidade financeira: o caso do setor bancário brasileiro
Data
2010-02-05
Autores
Orientador(res)
Moura, Alkimar R.
Métricas
Título da Revista
ISSN da Revista
Título de Volume
Resumo
This paper aims to analyze the relationship between the competition and financial stability for four of largest Brazilian banks, testing the hypothesis how the existence of market power can affect the riskness of banking institutions. Using Panzar and Rosse (1987) methodology for competition degree and BSM model by Black and Scholes (1973) and Merton (1974) for financial stability, we conclude that in Brazil, three out of four analyzed cases showed a inverse relationship between the competition and financial stability i.e., we conclude in those cases, bigger competition implies in lower financial stability. The paper uses available information from the Financial Institution Accounting Plan (COSIF) by Central Bank of Brasil and from Sao Paulo Stock Exchange (BM&FBOVESPA), between the fourth quarter of 1995 to fourth quarter of 2008.