Bailing out the Banks: Reconciling Stability and Competition

Thorsten Beck, Diane Coyle, Paul Seabright, Xavier Freixas 18 February 2010



Table of Contents


1. Why are banks special?

2. Bank competition and financial stability

3. Origins and initial impact of the banking crisis

4. Bank bailouts: their purpose, risks and implications for burden sharing

5. Competition implications of bailouts

6. An evaluation of DG Competition's strategy

7. Preventing future crises: reforming prudential regulation

8. Conclusions

Professor of Banking and Finance, The Business School (formerly Cass); Director, Florence School of Banking and Finance

Bennett Professor of Public Policy, University of Cambridge

Professor of Economics at the Toulouse School of Economics and CEPR Research Fellow

Professor, Universitat Pompeu Fabra; CEPR Research Fellow


CEPR Policy Research