Using a sample of listed banks in the Asia-Pacific region from 2000 to 2016, this paper documents that higher market power reduces risk taking but increases loan growth and performance in banking. This highlights the "bright side" of bank market power in general. However, the positive effect of market power on bank stability is more pronounced for well-capitalized banks, although their performance tends to decline, and loan growth is unaffected by market power. Hence, bank capitalization plays an important role in strengthening financial stability due to an increase in bank market power. Moreover, banks with higher market power located in countries with a lower degree of financial freedom exhibit lower riskiness, higher loan growth, and better performance. Greater control by authorities in the financial sector is essential, not only to enhance financial stability, but also to boost financial intermediation and bank performance following an increase in bank market power.

本文使用2000年至2016年亚太地区上市银行的样本，证明较高的市场支配力可以降低风险承担，但可以提高银行业务的贷款增长和绩效。这总体上凸显了银行市场力量的“光明面”。然而，资本雄厚的银行虽然对市场稳定的积极影响更为明显，尽管它们的表现往往会下降，而且贷款的增长不受市场力量的影响。因此，由于银行市场力量的增强，银行的资本化在加强金融稳定性方面起着重要作用。此外，位于金融自由度较低的国家中具有较高市场支配力的银行表现出较低的风险，较高的贷款增长和较好的业绩。政府部门必须加强对金融部门的控制，