Effet Du Pouvoir De Marché Sur La Prise De Risque Bancaire En Zone Cemac

Abstract

This article assesses the effect of market power on Bank Risk Taking in the CEMAC zone for the period 2000-2016 Competition is approximated by a structural indicator concentration ratio and a non-structural indicator Boone indicator Bank stability is measured by z-score Estimations by the generalised method of moments show that when the relationship between competition and banking stability is assumed to be linear the results support the competition-fragility or concentration-stability thesis However the test of non-linearity by introducing the quadratic term of the measure of competition indicator in the model shows that there is a threshold beyond which an increase in market power less competition could begin to harm stability Thus before taking action on competition in the CEMAC regulatory authorities must consider this non-linear relationship between banking stability and competition