The relationship between banking market competition and risk-taking: Do size and capitalization matter?

This paper addresses the effects of bank competition on the risk-taking behaviors of banks in 10 Latin American countries between 2003 and 2008. We conduct our empirical approach in two steps. First, we estimate the Boone indicator, which is a measure of competition. We then regress this measure and other explanatory variables on the banking "stability inefficiency" derived simultaneously from the estimation of a stability stochastic frontier. Unlike previous findings, this paper concludes that competition affects risk-taking behavior in a non-linear way as both high and low competition levels enhance financial stability, while we find the opposite effect for average competition. In addition, bank size and capitalization are essential factors in explaining this relationship. On the one hand, the larger a bank is, the more it benefits from competition. On the other hand, a greater capital ratio is advantageous for banks that operate in collusive markets, while capitalization only enhances the stability of larger banks under high and average competition. These results are of extreme importance when considering bank regulations, especially in light of the recent turmoil in the global financial markets. (C) 2012 Elsevier B.V. All rights reserved.

Prey-capture efficiency between juveniles and adults, feeding habitat and abundance of Wattled Jacana foragers in northern Pantanal, Mato Grosso state, Brazil

The choice of foraging strategies implies an attempt at gaining energy by predators. Supposedly, the difference in employing the "sit and wait" or "active foraging" behavior lays in hunter skills, experience and the kind of prey consumed. With the hypothesis that "active foraging" demands no learning, in this study we compared the prey capture efficiency among Wattled Jacana juveniles and adults, and also present descriptive information about feeding habitat and the abundance variation of foragers throughout the day in the northern Pantanal. Prey capture efficiency did not differ significantly among juveniles and adults, corroborating our initial hypothesis that "active foraging" is an instinctive behavior and demands no experience to be effective. However, future work is necessary to compare the energetic quality of consumed items by juveniles and adults, searching for differences explained by adults' experience. Foraging individuals were found at an average distance of 14 m ranging from 2 to 42 m) from the margin of the sampled swamps, however 64% of the foragers were found closer to the margins. The average depth of foraging sites was 17 cm, ranging from 5 to 40 cm, although no preference for specific classes of depth was found (p > 0,05). Despite the accepted general pattern of birds being more active in the early morning, the largest number of individuals foraging was observed between 11:00 and 12:00 AM, but no significant difference was found in the abundance of foraging individuals among different periods of the day. Factors, which were not analyzed, such as food availability and presence of competitors and predators need to be studied to reveal the main factors of the spatial and temporal distribution of the Wattled Jacana.