{"product_id":"thoughts-on-entry-regulation-financial-market-competition-and-financial-crisis-von-sven-lilienthal","title":"Thoughts on Entry Regulation, Financial Market Competition and Financial Crisis","description":"\u003cp\u003eSeminar paper from the year 2009 in the subject Business economics - Economic Policy, grade: 1,0, University of Frankfurt (Main), course: Financial Regulation, language: English, abstract: This paper deals with the terms entry regulation, financial market competition and also\u003c\/p\u003e\u003cp\u003eindicates connections to potential financial crises. Authors in research have been\u003c\/p\u003e\u003cp\u003eattempting for years to build up a remedy for an optimal set-up.1\u003c\/p\u003e\u003cp\u003eSo, this is the reason I observe a seemingly never-ending discussion between two\u003c\/p\u003e\u003cp\u003eunofficial parties: Neither the proponents of the concentration-stability view, neither\u003c\/p\u003e\u003cp\u003ethose of the concentration-fragility view will retreat from how to install proper\u003c\/p\u003e\u003cp\u003ecompetition in order to ensure stability.\u003c\/p\u003e\u003cp\u003eThis paper also aims to understand the terms of both parties; their arguments and\u003c\/p\u003e\u003cp\u003ewhether either monopolistic structures or competition are desirable in the financial\u003c\/p\u003e\u003cp\u003eindustry.\u003c\/p\u003e\u003cp\u003eTherefore, I lay the theoretical foundation. I demonstrate with a model of the authors\u003c\/p\u003e\u003cp\u003eBoyd \u0026amp; De Nicoló that even economies with monopolistic structure are exposed to\u003c\/p\u003e\u003cp\u003erisk-taking activities ¿ and not only banks in competitive industries. In chapter 3, I turn\u003c\/p\u003e\u003cp\u003eto the topic ¿Entry Regulation¿. I unveil different yardsticks of entry regulation, reveal\u003c\/p\u003e\u003cp\u003esome advantages and draw up my own index. I show that mainly countries that\u003c\/p\u003e\u003cp\u003esuffered devastating crises in recent times have stringent entry regulation. This can be\u003c\/p\u003e\u003cp\u003eshown by regarding their high capital requirements or their barriers for submitting\u003c\/p\u003e\u003cp\u003einformation of managers, future plans or composition of shareholders. I also show that\u003c\/p\u003e\u003cp\u003eentry regulation is an appropriate means for governments to control or to curb\u003c\/p\u003e\u003cp\u003ecompetition. In the last chapter, it is also shown that high entry capital requirements\u003c\/p\u003e\u003cp\u003eprevent mainly weak or inefficient banks from entry.\u003c\/p\u003e\u003cp\u003eIn chapter 4, I present two ratios for assessing competition: The concentration ratio\u003c\/p\u003e\u003cp\u003e(CR) and H-Statistics (H). CR is widely used in literature and defines the market share\u003c\/p\u003e\u003cp\u003eof the largest banks in a country. By presenting CR, I also turn back to the argument\u003c\/p\u003e\u003cp\u003ebetween the concentration-stability and concentration-fragility views. Moreover, I do\u003c\/p\u003e\u003cp\u003emy part to debilitate the somewhat misleading statement that the European banking\u003c\/p\u003e\u003cp\u003emarket is in a phase of consolidation and concentration. I do this by revealing that the\u003c\/p\u003e\u003cp\u003econcentration ratio slightly decreased in a time span of four years during the current\u003c\/p\u003e\u003cp\u003edecade. H-Statistics is a ratio to find out more about the ferocity and contestability of a market and how market participants react to changes in output prices. I show that there\u003c\/p\u003e\u003cp\u003eis, maybe surprisingly, no strict correlation between CR and H-Statistics.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003e[...]\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783640302185\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783640302185","offer_id":39441593204829,"sku":"9783640302185","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/20f447c1-b90f-4335-9aa7-a6998850303b.jpg?v=1777615947","url":"https:\/\/shop.autorenwelt.de\/products\/thoughts-on-entry-regulation-financial-market-competition-and-financial-crisis-von-sven-lilienthal","provider":"Autorenwelt Shop","version":"1.0","type":"link"}