Download or read book Testing for Competition in Banking written by Jukka Vesala and published by . This book was released on 1995 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: An empirical analysis of competition in the Finnish banking industry since deregulation in the mid-1980s.

Download or read book Impact of Bank Competition on the Interest Rate Pass through in the Euro Area written by Michiel van Leuvensteijn and published by . This book was released on 2008 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Contestable Markets Theory Competition and the United States Commercial Banking Industry written by Ross N. Dickens and published by Routledge. This book was released on 2019-06-04 with total page 187 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1996. Routledge is an imprint of Taylor & Francis, an informa company.

Download or read book Financial Dependence Banking Sector Competition and Economic Growth written by Stijn Claessens and published by World Bank Publications. This book was released on 2005 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The relationships among competition in the financial sector, access of firms to external financing, and associated economic growth are ambiguous in theory. Moreover, measuring competition in the financial sector can be complex. In this paper Claessens and Laeven first estimate for 16 countries a measure of banking system competition based on industrial organization theory. They then relate this competition measure to growth of industries and find that greater competition in countries' banking systems allows financially dependent industries to grow faster. These results are robust under a variety of tests. The results suggest that the degree of competition is an important aspect of financial sector funding. This paper--a product of the Financial Sector Operations and Policy Department--is part of a larger effort in the department to study competition in banking"--World Bank web site.

Download or read book Bank Competition and Financial Stability written by Mr.Gianni De Nicolo and published by International Monetary Fund. This book was released on 2011-12-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study versions of a general equilibrium banking model with moral hazard under either constant or increasing returns to scale of the intermediation technology used by banks to screen and/or monitor borrowers. If the intermediation technology exhibits increasing returns to scale, or it is relatively efficient, then perfect competition is optimal and supports the lowest feasible level of bank risk. Conversely, if the intermediation technology exhibits constant returns to scale, or is relatively inefficient, then imperfect competition and intermediate levels of bank risks are optimal. These results are empirically relevant and carry significant implications for financial policy.

Download or read book Testing for Banking Competition in Germany Evidence from Saving Banks written by Horst Gischer and published by . This book was released on 2005 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Competition in Finnish Banking written by Matti Suominen and published by . This book was released on 1991 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Bank Competition Risk Taking and their Consequences Evidence from the U S Mortgage and Labor Markets written by Alan Xiaochen Feng and published by International Monetary Fund. This book was released on 2018-07-06 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bank competition can induce excessive risk taking due to risk shifting. This paper tests this hypothesis using micro-level U.S. mortgage data by exploiting the exogenous variation in local house price volatility. The paper finds that, in response to high expected house price volatility, banks in U.S. counties with a competitive mortgage market lowered lending standards by twice as much as those with concentrated markets between 2000 and 2005. Such risk taking pattern was associated with real economic outcomes during the financial crisis, including higher unemployment rates in local real sectors.

Download or read book Bank Risk Taking and Competition Revisited written by Mr.Gianni De Nicolo and published by International Monetary Fund. This book was released on 2006-12-01 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies two new models in which banks face a non-trivial asset allocation decision. The first model (CVH) predicts a negative relationship between banks' risk of failure and concentration, indicating a trade-off between competition and stability. The second model (BDN) predicts a positive relationship, suggesting no such trade-off exists. Both models can predict a negative relationship between concentration and bank loan-to-asset ratios, and a nonmonotonic relationship between bank concentration and profitability. We explore these predictions empirically using a cross-sectional sample of about 2,500 U.S. banks in 2003 and a panel data set of about 2,600 banks in 134 nonindustrialized countries for 1993-2004. In both these samples, we find that banks' probability of failure is positively and significantly related to concentration, loan-to-asset ratios are negatively and significantly related to concentration, and bank profits are positively and significantly related to concentration. Thus, the risk predictions of the CVH model are rejected, those of the BDN model are not, there is no trade-off between bank competition and stability, and bank competition fosters the willingness of banks to lend.

Download or read book Testing for Competition in the Spanish Banking Industry written by Luis Gutiérrez De Rozas and published by . This book was released on 2007 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Testing for Competition Among German Banks written by Hannah Sabine Hempell and published by . This book was released on 2002 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given the marked reduction in the number of banks in Germany during recent years, the study estimates competitive behavior in the German banking system by applying an empirical method developed by Panzar and Rosse (1987). By estimating the banks' reduced form revenue functions, the sums of their estimated factor price elasticities which constitute the so called H-statistics provide information about banks' competitive behavior. Based on the micro data of banks' balance sheets and profit and loss accounts for the years 1993-1998, the hypotheses of perfect collusion as well as of perfect competition can be rejected by means of panel-econometric estimations. For individual categories of banks significant differences were found with respect to savings banks and cooperative banks, on the one hand, and credit banks, on the other, as well as for several size categories. However, despite the decrease in the number of banks in Germany during the investigated period and a slight increase in concentration during that time, there are no clear indications of a different competitive behavior in the second half of the time period under investigation.

Download or read book Trends in Competition and Profitability in the Banking Industry written by Jacob A. Bikker and published by . This book was released on 2005 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper brings to the forefront the assumptions that we make when focussing on a particular type of explanation for bank profitability. We evaluate a broad field of research by introducing a general framework for a profit maximizing bank and demonstrate how different types of models can be fitted into this framework. Next, we present an overview of the current major trends in European banking and relate them to each model's assumptions, thereby shedding light on the relevance, timeliness and shelf life of the different models. This way, we arrive at a set of recommendations for a future research agenda. We advocate a more prominent role for output prices, and suggest a modification of the intermediation approach. We also suggest ways to more clearly distinguish between market power and effciency, and explain why we need time-dependent models. Finally, we propose the application of existing models to different size classes and sub-markets. Throughout we emphasize the benefits from applying several, complementary models to overcome the identification problems that we observe in individual models.

Download or read book Bank Competition Risk and Asset Allocations written by Gianni De Nicoló and published by International Monetary Fund. This book was released on 2009-07 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study a banking model in which banks invest in a riskless asset and compete in both deposit and risky loan markets. The model predicts that as competition increases, both loans and assets increase; however, the effect on the loans-to-assets ratio is ambiguous. Similarly, as competition increases, the probability of bank failure can either increase or decrease. We explore these predictions empirically using a cross-sectional sample of 2,500 U.S. banks in 2003, and a panel data set of about 2600 banks in 134 non-industrialized countries for the period 1993-2004. With both samples, we find that banks' probability of failure is negatively and significantly related to measures of competition, and that the loan-to-asset ratio is positively and significantly related to measures of competition. Furthermore, several loan loss measures commonly employed in the literature are negatively and significantly related to measures of bank competition. Thus, there is no evidence of a trade-off between bank competition and stability, and bank competition seems to foster banks' willingness to lend.

Download or read book Formal Finance and Trade Credit During China s Transition written by Robert J. Cull and published by World Bank Publications. This book was released on 2007 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a large panel dataset of Chinese industrial firms, the authors examine the determinants of access to loans from formal financial intermediaries and extension of trade credit. Poorly performing state-owned enterprises were more likely to redistribute credit to firms with less privileged access to loans through trade credit, a pattern consistent with some of the extension of trade credit being involuntary. By contrast, profitable private domestic firms were more likely to extend trade credit than unprofitable ones. Trade credit likely provided a substitute for loans for these private firms' customers that were shut out of formal credit markets. As biases in lending became less severe, the amount of trade credit extended by private firms declined.

Download or read book Microeconomics of Banking third edition written by Xavier Freixas and published by MIT Press. This book was released on 2023-08-22 with total page 229 pages. Available in PDF, EPUB and Kindle. Book excerpt: The third edition of a leading text on the microeconomic foundations of banking, comprehensively updated with new coverage of the 2008 Global Financial Crisis, fintech, and the latest research in banking theory. The banking industry has undergone seismic change in the twenty-first century, from the overhaul of regulation in the wake of the 2008 Global Financial Crisis to the digitalization of the economy and the disruption of traditional business models by ascendant tech giants. Now in a comprehensively updated third edition, this essential graduate-level text on the microeconomic foundations of banking provides the rigorous theoretical approach required to understand these new structures and norms, functioning as a user’s guide to recent academic literature. Microeconomics of Banking offers a comprehensive view of the evolution of banking theory and the rapidly changing realm of financial intermediation, examining the central issues and offering the necessary tools for understanding how they have been modeled. New edition highlights: Up-to-date coverage of the latest research in banking theory as well as the events of the global financial crisis and resultant Basel III regulatory framework New chapters on liquidity and systemic risk New material throughout on cryptocurrencies, fintech, and other facets of a digitalized economy

Download or read book Competition in Credit Markets written by Michael Tröge and published by Springer Science & Business Media. This book was released on 2013-06-29 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: Michael Tröge develops game-theoretic and auction-theoretic models for the strategic interaction of banks in the credit market.

Download or read book Competition and Innovation in the Banking Industry written by Eric de Bodt and published by . This book was released on 2018 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: How does competition affect innovation in the banking industry? We use the 1994 Riegle-Neal Interstate Banking and Branching Efficiency Act as a major exogenous shock on U.S. banking industry competition and study its impact on innovation. Addressing this issue is challenging however because traditionally banks do not report research and development expenses and most often do not patent their new product/service developments. Classic measures of innovation are therefore not available. Consequently, we start by introducing a new measure of innovation, denoted PSV for Product Similarity Variability, based on the Hoberg and Phillips (2010) measure of product similarity score, and report numerous results that confirm its validity. Thanks to the availability of the Hoberg and Phillips (2010) measure for financial institutions and banks in particular, our PSV measure of innovation unlocks the doors to investigations into the relation between competition and innovation in the banking industry. We proceed by implementing differences-in-differences tests around the Riegle-Neal Act adoptions at states level. Our results suggest that competition has a negative but transitory impact on innovation in the banking industry.