Samantas, Ioannis (2013): Income-specific estimates of competition in European banking.
Preview |
PDF
MPRA_paper_51098.pdf Download (727kB) | Preview |
Abstract
This paper constitutes a new endeavor of investigating competitive conditions in European banking. Since the vast literature of competition modeling has produced mixed results, the proposed methodology goes one step further in order to investigate the intensity of key effects on bank competition as decomposed into specific bank activities. The sample comprises nine of the most developed banking markets in the European region during the period 2002-2010. The concluding remarks over the explanatory power of traditional collusion, relative market power and efficiency alongside other key controls on bank pricing conduct, provide considerable policy implications.
Item Type: | MPRA Paper |
---|---|
Original Title: | Income-specific estimates of competition in European banking |
Language: | English |
Keywords: | Competition; Banking income, Collusion, Market power, Cost efficiency |
Subjects: | D - Microeconomics > D4 - Market Structure, Pricing, and Design D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm |
Item ID: | 51098 |
Depositing User: | Ioannis Samantas |
Date Deposited: | 31 Oct 2013 01:48 |
Last Modified: | 07 Oct 2019 02:07 |
References: | Angelini, P. and Cetorelli, N., 2003. The effects of regulatory reform on competition in the banking industry. Journal of Money, Credit and Banking 35, 663-684. Berg, S.A. and Kim, M., 1994. Oligopolistic interdependence and the structure of production in banking: an empirical evaluation. Journal of Money, Credit and Banking 26, 309-322. Berger, A.N., Klapper, L.F. and Turk-Ariss, R., 2009. Bank competition and financial stability. Journal of Financial Services Research 35, 99-118. Berger, N.A. and Hannan, H.T., 1998. The Efficiency Cost of Market Power in the Banking Industry: A Test of the "Quiet Life" and Related. The Review of Economics and Statistics 80, 454-465. Berlin, M. and Mester, L.J., 1999. Deposits and relationship lending. Review of Financial Studies 12, 579-607. Bikker, A.J., 2003. Testing for imperfect competition on EU deposit and loan markets with Bresnahan's market power model. Kredit und Kapital 36, 167-212. Bikker, A.J. and Groeneveld, J.M., 2000. Competition and concentration in the EU banking industry. Kredit Und Kapital 33, 62–98. Bolt, W. and Humphrey, D., 2010. Bank competition efficiency in Europe: A frontier approach. Journal of Banking and Finance 34, 1808-1817. Cameron, A.C. and Trivedi, P.K., 2010. Microeconometrics using stata. Vol. 5. College Station, TX: Stata Press, p. 166. Carbo, S., Humphrey, D., Maudos, J. and Molyneux, P., 2009. Cross-country comparisons of competition and pricing power in European banking. Journal of International Money and Finance 28, 115-134. Casu, B. and Girardone, C., 2006. Bank competition, concentration and efficiency in the single European market. The Manchester School 74, 441-468. Cetorelli, N. and Gamberra, M., 2001. Banking market structure, financial dependence and growth: International evidence from industry data. Journal of Finance 56, 617–648. Claessens, S. and Laeven, L., 2004. What drives bank competition? Some international evidence. Journal of Money, Credit and Banking 36, 563-583. Claeys, S. and Vennet, R.V., 2008. Determinants of bank interest margins in Central and Eastern Europe: A comparison with the West. Economic Systems 32, 197-216. Corvoisier, S. and Gropp, G., 2002. Bank concentration and retail interest rates. Journal of Banking and Finance 26, 2155-2189. De Guevara, J.F., Maudos, J. and Perez, F., 2005. Market power in European banking sectors. Journal of Financial Services Research 27, 109-137. Delis, M.D. and Tsionas, E.G., 2009. The joint estimation of bank-level market power and efficiency. Journal of Banking and Finance 33, 1842-1850. Delis, M.D., Staikouras, K.C. and Varlagas, P.T., 2008. On the measurement of market power in the banking industry. Journal of Business Finance and Accounting 35, 1023-1047. Demirgüç-Kunt, A. and Huizinga, H., 1999. Determinants of commercial bank interest margins and profitability: Some international evidence. The World Bank Economic Review 13, 379-408. Demsetz, H., 1973. Industry structure, market rivalry and public policy. Journal of Law and Economics 16, 1-10. Hawtrey, K. and Liang, H., 2008. Bank interest margins in OECD countries. The North American Journal of Economics and Finance 19, 249-260. Heffernan, S.A., 2002. How do UK financial institutions really price their banking products?. Journal of Banking and Finance 26, 1997–2016. Khiabani, N. and Hamidisahneh, M., 2012. The effects of entry regulation on bank competition: The case of the Iranian banking industry. Journal of Applied Economics 15, 119-137. Koetter, M., Kolari, J.W. and Spierdijk, L., 2012. Enjoying the quiet life under deregulation? Evidence from adjusted Lerner indices for US banks. Review of Economics and Statistics 94, 462-480. Lakonishok, J., Shleifer, A. and Vishny, R.W., 1992. The impact of institutional trading on stock prices. Journal of Financial Economics 32, 23-43. Maudos, J. and De Guevara, J.F. 2007. The cost of market power in banking: Social welfare loss vs. cost inefficiency. Journal of Banking and Finance 31, 2103-2125. Molyneux, P., Lloyd-Williams, D. and Thornton, J., 1994. Competitive conditions in European banking. Journal of Banking and Finance 18, 445-459. Neven, D. and Rö ller , L.H., 1999. An aggregate structural model of competition in the European banking industry. International Journal of Industrial Organization 17, 1059-1074. Nguyen, M., Skully, M. and Perera, S., 2012. Bank market power and revenue diversification: Evidence from selected ASEAN countries. Journal of Asian Economics 3, 688-700. Panzar, J.C., Rosse, J.N., 1987. Testing for ‘monopoly’ equilibrium. The Journal of Industrial Economics 35, 443-456. Petersen, M.A. and Rajan, R.G., 1995. The effect of credit market competition on lending relationships. Quarterly Journal of Economics 110, 407-443. Saunders, A. and Schumacher, L., 2000. The determinants of bank interest rate margins: an international study. Journal of International Money and Finance 19, 813- 832. Shaffer, S., 1993. A Test of Competition in Canadian Banking. Journal of Money, Credit and Banking 25, 49-61. Shaffer, S., 2001. Banking conduct before the European single banking license: a cross-country comparison. The North American Journal of Economics and Finance 12, 79-104. Staikouras, C.K. and Koutsomanoli‐Fillipaki, A., 2006. Competition and concentration in the new European banking landscape. European Financial Management 12, 443-482. Steen, F. and Salvanes K., 1999. Testing for Market Power using a Dynamic Oligopoly Model. International Journal of Industrial Organization 17, 147– 77. Turk Ariss, R., 2010. On the implications of market power in banking: Evidence from developing countries. Journal of Banking and Finance 34, 765-775. Vennet, R.V., 2002. Cost and profit efficiency of financial conglomerates and universal banks in Europe. Journal of Money, Credit, and Banking 34, 254-282. Weill, L., 2004. On the relationship between competition and efficiency in the EU banking sector. Kredit und Capital 37, 329–352. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/51098 |