Banking system concentration and institutional environment

Abstract

This thesis’ purpose is to explore the relationship between banking concentration and institutional framework in a sample of thirty-four countries, members of the OECD, within the time span of 1990 and 2010. It should be noted that few similar research has been conducted in the past. It is found that the institutional framework has a strong and positive effect on banking concentration. Results appear to be consistent with the survivor principal (Yeager (2004), Keeler (1989), Stigler (1958)).