BookDOI
What drives bank competition? some international evidence
Stijn Claessens,Luc Laeven +1 more
TLDR
In this article, the authors apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50 countries' banking systems.Abstract:
Using bank-level data, the authors apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50 countries' banking systems. They then relate this competitiveness measure to indicators of countries' banking system structures and regulatory regimes. The authors find systems with greater foreign bank entry and fewer entry and activity restrictions to be more competitive. They find no evidence that the competitiveness measure negatively relates to banking system concentration. Their findings confirm that contestability determines effective competition, especially by allowing (foreign) bank entry and reducing activity restrictions on banks.read more
Citations
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Journal ArticleDOI
The Theory of Bank Risk Taking and Competition Revisited
John H. Boyd,Gianni De Nicolo +1 more
TL;DR: The authors show that existing theoretical analyses of this topic are fragile, since there exist fundamental risk-incentive mechanisms that operate in exactly the opposite direction, causing banks to become more risky as their markets become more concentrated.
Journal ArticleDOI
Bank concentration, competition, and crises: First results
TL;DR: In this paper, the impact of national bank concentration, bank regulations, and national institutions on the likelihood of a country suffering a systemic banking crisis was studied using data on 69 countries from 1980 to 1997.
Journal ArticleDOI
Credit and Banking in a DSGE Model of the Euro Area
TL;DR: In this article, the role of credit-supply factors in business cycle fluctuations is investigated. And the authors show that the existence of a banking sector partially attenuates the effects of demand shocks, while it helps propagate supply shocks.
BookDOI
Financial institutions and markets across countries and over time - data and analysis
TL;DR: In this article, the authors introduce the updated and expanded version of the Financial Development and Structure Database and present recent trends in structure and development of financial institutions and markets across countries, adding indicators on banking structure and financial globalization.
Posted Content
Bank Competition and Financial Stability
TL;DR: In this paper, the authors test these theories by regressing measures of loan risk, bank risk and bank equity capital on several measures of market power, as well as indicators of the business environment, using data for 8,235 banks in 23 developed nations.
References
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ReportDOI
Financial Dependence and Growth
Raghuram G. Rajan,Raghuram G. Rajan,Raghuram G. Rajan,Luigi Zingales,Luigi Zingales,Luigi Zingales +5 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms, and found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
Posted Content
Financial Dependence and Growth
Raghuram G. Rajan,Luigi Zingales +1 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship: that financial development reduces the costs of external finance to firms, and they found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
Book
Contestable Markets and the Theory of Industry Structure
TL;DR: In this article, the authors present a cost minimization model for a multi-product competitive industry in perfectly contestable markets, where the single product case is considered and the multiproduct case is assumed to be monopoly equilibrium.
Journal ArticleDOI
INSIDERS AND OUTSIDERS: The Choice between Informed and Arm's-length Debt
TL;DR: In this paper, the authors argue that while informed banks make flexible financial decisions which prevent a firm's projects from going awry, the cost of this credit is that banks have bargaining power over the firm's profits, once projects have begun.
Journal ArticleDOI
The Effect of Credit Market Competition on Lending Relationships
TL;DR: The authors showed that the extent of competition in credit markets is important in determining the value of lending relationships and that creditors are more likely to finance credit constrained firms when credit markets are concentrated because it is easier for these creditors to internalize the benefits of assisting the firms.
Related Papers (5)
Competition, concentration and their relationship: An empirical analysis of the banking industry
Jacob A. Bikker,Katharina Haaf +1 more