Competitive conditions in the Central and Eastern European banking systems

Delis, Manthos D (2008): Competitive conditions in the Central and Eastern European banking systems.

Abstract

The aim of this study is to conduct a large-scale empirical analysis of the competitive conditions in the banking systems of Central and Eastern European countries. The well-known model of Panzar and Rosse (1987) is implemented on bank-level data over the period 1999-2006. The estimates based on the separate country panels suggest a wide variation in the competitive conditions of the banking systems examined, with some being characterized as (monopolistically) competitive and other as non-competitive. Finally, the results from the full sample indicate that bank revenue is substantially influenced by structural and macroeconomic conditions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Market power; Central and Eastern European banks; Panzar-Rosse model
• Subjects: D - Microeconomics > D2 - Production and Organizations > D20 - General; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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