Imperial College London

Professor Franklin Allen

Business School

Executive Director of the Brevan Howard Centre



+44 (0)20 7594 9195f.allen Website CV




2.05B52-53 Prince's GateSouth Kensington Campus






BibTex format

author = {Allen, F and Gale, D},
pages = {453--480},
title = {Competition and financial stability},
year = {2004}

RIS format (EndNote, RefMan)

AB - Competition policy in the banking sector is complicated by the necessity of maintaining financial stability. Greater competition may be good for (static) efficiency, but bad for financial stability. From the point of view of welfare economics, the relevant question is: what are the efficient levels of competition and financial stability? We use a variety of models to address this question and find that different models provide different answers. The relationship between competition and stability is complex: sometimes competition increases stability. In addition, in a second-best world, concentration may be socially preferable to perfect competition and perfect stability may be socially undesirable.
AU - Allen,F
AU - Gale,D
EP - 480
PY - 2004///
SN - 0022-2879
SP - 453
TI - Competition and financial stability
ER -