Delis, Manthos D (2010): Bank competition, financial reform and institutions: The importance of being developed.
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In this paper we estimate the degree of market power at the bank-level for 84 banking systems worldwide. Subsequently, we analyze the sources of bank competition, placing emphasis on the impact of financial reform and the quality of institutions. We find that financial liberalization policies reduce the market power of banks in developed countries with advanced politico-institutional milieus. In contrast, banking competition does not improve at the same pace in countries with weaker institutions and a lower level of economic development. The results hold across a wide array of identification tests and estimation methods. The main policy implication to be drawn is that a certain level of institutional maturity is a precondition for the success of reforms aimed at enhancing competition and efficiency of banking markets.
|Item Type:||MPRA Paper|
|Original Title:||Bank competition, financial reform and institutions: The importance of being developed|
|Keywords:||Bank competition; Financial reforms; Institutional development|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C10 - General
P - Economic Systems > P5 - Comparative Economic Systems > P51 - Comparative Analysis of Economic Systems
P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P34 - Financial Economics
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Manthos Delis|
|Date Deposited:||21. May 2011 13:43|
|Last Modified:||15. Feb 2013 15:03|
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Bank competition, institutional strength and financial reforms in Central and Eastern Europe and the EU. (deposited 30. Jul 2009 00:14)
- Bank competition, financial reform and institutions: The importance of being developed. (deposited 21. May 2011 13:43) [Currently Displayed]