Consolidation and Competition in the Banking Industries of the EU Member and Candidate Countries

Kasman A.

EMERGING MARKETS FINANCE AND TRADE, cilt.46, sa.6, ss.121-139, 2010 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 46 Sayı: 6
  • Basım Tarihi: 2010
  • Doi Numarası: 10.2753/ree1540-496x460608
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.121-139
  • Anahtar Kelimeler: competition, European banking, market structure, Panzar-Rosse model, PRICE
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

This paper investigates competitive conditions in the banking markets of all EU member and candidate countries over the period 1995-2007. The Panzar and Rosse (1987) model is implemented on bank-level data. In particular, the unscaled revenue equation is employed to assess market structure. Country-specific empirical results suggest a wide variation in the competitive conditions of the banking systems in the sampled countries. Nineteen banking systems are characterized as monopolistically competitive, nine as monopolies or perfectly colluding oligopolies, and two as perfectly competitive over the sample period. This study also investigates whether competition conditions changed over the sample period, using 2001 as an endogenously determined break year. The empirical evidence reveals that banking systems became less competitive after that time.