Implications on bank risk and financial intermediation of banking reforms in emergent economies.

Summary The objective of this thesis is to analyze the implications of the reforms of the banking system in emerging countries on banking risk taking and financial intermediation. This thesis is composed of three parts. In the first part, consisting of two chapters, we focus on the impact of market power on the financial stability of Asian banks. The empirical results show that high market power leads to more financial instability. This is despite the fact that banks that operate in a less competitive market are well capitalized. Part two consists of two chapters devoted to the Indonesian banking system. The objective is to examine the impact of the increase in the capital ratio on banking stability, taking into account the risk aversion of banks. Our empirical results show the presence of managerial interests that cause inefficiencies and financial disintermediation. In the third part, we formalize, in a theoretical model, the presence of this financial disintermediation that leads to the appearance of a threshold effect in the link between finance and growth.