@article{Concentration:1357,
      recid = {1357},
      author = {Lai, Alexandra and Solomon, Raphael},
      title = {Ownership Concentration and Competition in Banking  Markets},
      publisher = {Bank of Canada},
      address = {2006},
      pages = {1 online resource (v, 30 pages)},
      abstract = {Many countries prohibit large shareholdings in their  domestic banks. The authors examine whether such a  restriction restrains competition in a duopolistic loan  market. Blockholders may influence managers' output  decisions by choosing capital structure, as in Brander and  Lewis (1986). For the blockholder, debt has an additional  benefit: it "disciplines" a manager by reducing the amount  of free cash flow from which the manager can divert funds.  A larger blockholder can exert more control. The authors  show that an economy with blockholders often leads to a  more competitive banking sector. Hence, a restriction on  the size of blockholdings has anti-competitive results.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1357},
      doi = {https://doi.org/10.34989/swp-2006-7},
}