The Competitiveness-Stability Relation from the Viewpoint of the Bank System in Bulgaria Cover Image

Връзката „конкурентност - стабилност“ през призмата на банковата система в България
The Competitiveness-Stability Relation from the Viewpoint of the Bank System in Bulgaria

Author(s): Lubomir Georgiev, Nedyalko Valkanov, Adrian Yambolov
Subject(s): Financial Markets
Published by: Икономически университет - Варна

Summary/Abstract: In the study there is made an attempt to provide a satisfactory answer to the following question - To what extent does the competition on the banking market in Bulgaria influence the stability of credit institutions and the bank system as a whole? In this context the former is structured in the following order:1. A theoretical and applied analysis of: the relation between competition in the banking sector and the stability of credit institutions; the indicators for measuring the bank's competitiveness and stability; the use of the indicators in various research models.2. An empirical study of the competitiveness-stability relation from the viewpoint of the bank system in Bulgaria.The results of the study show the existence of a positive connection between the competition on the banking market and the Bank Z-Score indicator, measuring the socalled Distance-to-Default of banks. Therefore it provides evidence in support of the competitiveness-stability hypothesis. The research thesis being argued is that banking should not be protected from competition, i.e. competition can bring considerable benefits to the banking sector in Bulgaria and should not be sacrificed in the name of greater stability.

  • Issue Year: 88/2016
  • Issue No: 1
  • Page Range: 275-353
  • Page Count: 79
  • Language: Bulgarian