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Eric Fina Kamani
''The effect of the trading activities of banks on systemic risk: does banking industry concentration matter?''
( 2020, Vol. 40 No.1 )
In a context where the authorities of the European Banking Union are showing a keen interest in mergers among banks with a view to consolidating the European banking industry, I explore the specific and joint impact of the trading activities of European deposits-taking banks and banking industry concentration on banks' exposure to systemic risk . I find that trading activities increased banks' exposure to systemic risk only in a concentrated banking industry. This paper therefore does not support the encouragement by the European Banking Union authorities for mergers between banks.
Keywords: Trading banks activities, Banking industry concentration, Banks systemic risk exposure
JEL: G2 - Financial Institutions and Services: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Sep 03 2019 Manuscript Accepted : Feb 15 2020

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