scholarly journals MARKET POWER PERBANKAN INDONESIA

2012 ◽  
Vol 14 (3) ◽  
pp. 235-255
Author(s):  
Andi Fahmi Lubis
Keyword(s):  
Market Power ◽  
Commercial Banks ◽  
Credit Market ◽  
Structural Equations ◽  
Cost Data ◽  
Actual Cost ◽  
Oligopoly Model

This study was aimed to estimate the degree of market power exercised by commercial banks incredit market in Indonesia.Model used to answered this study’s objective was Bresnahan-Lau oligopoly model that using structural equations to estimate the degree of market power.This model was using very different approach than Structure-Conduct-Performance (SCP) paradigm that commonly used in market power studies.Without using actual cost data and accounting profit, Bresnahan-Lau model was able to estimate directly the degree of market power from structural equations. The main result of this study was the degree of market power exercised by commercial banks in credit market relatively low; in other words the degree of competition in credit market in Indonesia was quite high.Keywords: market power, oligopoly, Bresnahan-Lau, structure, performance, conduct, SCP.JEL Classification : L13, G21

scholarly journals MARKET POWER OF INDONESIAN BANKING

2012 ◽  
Vol 14 (3) ◽  
pp. 225-244
Author(s):  
Andi Fahmi Lubis
Keyword(s):  
Market Power ◽  
Commercial Banks ◽  
Credit Market ◽  
Structural Equations ◽  
Cost Data ◽  
Actual Cost ◽  
Oligopoly Model ◽  
Power Studies

This study aimed to estimate the degree of market power exercised by commercial banks in the credit market in Indonesia. The model used to answer this study’s objective was the Bresnahan-Lau oligopoly model that uses structural equations to estimate the degree of market power. This model uses a very different approach than Structure-Conduct-Performance (SCP) paradigm commonly used in market power studies. Without using actual cost data and accounting profit, the Bresnahan-Lau model was able to estimate directly the degree of market power from the structural equations. The main result of this study showed that the degree of market power exercised by commercial banks in the credit market is relatively low; in other words, the degree of competition in the credit market in Indonesia is quite high. Keywords: market power, oligopoly, Bresnahan-Lau, structure, performance, conduct, SCP.JEL Classification : L13, G21

scholarly journals Scanner Data: New Opportunities for Demand and Competitive Strategy Analysis

1994 ◽  
Vol 23 (2) ◽  
pp. 125-139 ◽  
Author(s):  
Ronald W. Cotterill
Keyword(s):  
Market Power ◽  
Price Competition ◽  
Tacit Collusion ◽  
Scanner Data ◽  
Strategy Analysis ◽  
Price Response ◽  
Oligopoly Model ◽  
Sufficient Detail ◽  
Bertrand Price Competition ◽  
Reaction Equations

This paper reviews prior research by agricultural economists on the demand for food products using scanner data. Thereafter, a differentiated product's oligopoly model with Bertrand price competition is developed and used to specify brand level demand and oligopoly price reaction equations. The model has sufficient detail to estimate brand level price elasticities and price response elasticities which in turn can be used to estimate three indices of market power. The first index estimated is the familiar Rothschild Index. The paper develops estimates two new indexes, the observed index and the Chamberlin quotient for tacit collusion. It concludes with comments on how the proposed method for the measurement of market power in a differentiated oligopoly can be improved.

Linking bank regulatory capital buffer to business cycle fluctuations

2018 ◽  
Vol 45 (3) ◽  
pp. 565-585 ◽  
Author(s):  
Kolade Sunday Adesina ◽  
John Muteba Mwamba
Keyword(s):  
Panel Data ◽  
Market Power ◽  
Commercial Banks ◽  
Basel Iii ◽  
Regulatory Capital ◽  
Revenue Diversification ◽  
African Countries ◽  
Data Set ◽  
Content Type ◽  
Cyclical Behavior

Purpose The purpose of this paper is to assist bank regulators in Africa who are currently considering the implementation of Basel III countercyclical capital buffer (CCB) requirement. Design/methodology/approach Using a panel data set of 129 commercial banks operating in 14 African countries over the period 2004–2014, this paper estimates the system generalized method of moments regression to examine the impact of business cycle on banks’ regulatory capital buffers and attempts to identify the influence of bank revenue diversification, market power and cost of funding (CF) on bank regulatory capital buffers. It further carries out some robustness analyses using a panel data set of 257 commercial banks in 23 African countries over the period 2004–2014. Findings The results show that higher regulatory capital buffers are associated with higher market power, higher revenue diversification and higher CF. Additionally, the results show significant evidence of procyclical behavior of bank capital buffers (BUFs) in the sampled countries. Practical implications The results of this study suggest that African banking systems are not exposed to contagion and systemic risks arising from countercyclical movements of BUFs to the real economy. Therefore, this study does not support the implementation of the Basel III CCB requirement in the sampled African countries. Originality/value Considering that the results of existing studies on the cyclical behavior of BUFs are inconclusive, there is value in studying the cyclical movements of bank regulatory capital buffers in a set of countries that has not been analyzed before. Toward this direction, this is the first empirical study focusing on the cyclical behavior of bank regulatory capital buffers in Africa. Besides examining the cyclical behavior of bank regulatory capital buffers, this paper further investigates the effects of bank revenue diversification, market power and CF on bank regulatory capital buffers.

scholarly journals Credit Reporting Agency: Russian Practice Disadvantages and Ways to Overcome Them

2017 ◽  
Vol 6 (2) ◽  
pp. 4-8 ◽  
Author(s):  
Сысоева ◽  
A. Sysoeva
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Control Mechanism ◽  
Credit Market ◽  
Credit Reporting

The article describes the business need of credit reporting agency (CRA) in the banking sector, its impact on the development of the credit market as a whole. It also discusses the problems arising in this field and their solutions. Through CRA system simplifies the activities of commercial banks, reduces the risk for all participants in the lending process, there is a control mechanism for the borrowers.

scholarly journals Market Power And Efficiency Of Commercial Banks In Indonesia

2019 ◽  
Vol 23 (1) ◽  
pp. 133
Author(s):  
Eny Susilowati, Budi Purwanto, Wita Juwita Ermawati
Keyword(s):  
Data Envelopment Analysis ◽  
Interest Rate ◽  
Market Power ◽  
Commercial Banks ◽  
Least Square ◽  
Data Envelopment ◽  
Good Efficiency ◽  
Demand Equation ◽  
Lending Rates ◽  
Model Market

In order to encourage credit growth that experienced sluggishness from 2012 to 2016, Bank Indonesia sought to increase lending by lowering the benchmark interest rate so that it could be followed by a decline in lending rates by banks in Indonesia. But this is thought to cause competition to become a low oligopoly and decrease efficiency. This study aims to determine the factors that affect the amount of credits paid, estimating the market power and efficiency of commercial banks in Indonesia for the 2012-2016 period. Efficiency method used is Data Envelopment Analysis, while to estimate market power using two stage least square. The results of the demand equation show GDP and WCCR_GDP have no significant effect while the rest variables have significant effect. From the two equations using Bresnahan-Lau’s model, market power is 0.231. Efficiency measurement obtained a good efficiency scale even reaching 100% in 2013, 2015 and 2016.

Impact of machine learning-directed on-treatment evaluations on cost of acute care visits: Economic analysis of SHIELD-RT.

2021 ◽  
Vol 39 (15_suppl) ◽  
pp. 1509-1509
Author(s):  
Divya Natesan ◽  
Samantha M. Thomas ◽  
Eric Eisenstein ◽  
Neville Eclov ◽  
Nicole Dalal ◽  
...  
Keyword(s):  
Machine Learning ◽  
Acute Care ◽  
Cost Data ◽  
Health Record ◽  
Actual Cost ◽  
Single Institution ◽  
Randomized Controlled ◽  
Hospital Visits ◽  
Intervention Costs ◽  
Mean Cost

1509 Background: SHIELD-RT was a randomized controlled quality improvement study (NCT03775265) that implemented electronic health record-based machine learning (ML) to direct supplemental visits for high risk (HR) patients undergoing radiotherapy (RT). Acute care visits (ER visits or hospitalizations) were reduced from 22% to 12%. We evaluated the costs associated with acute visits in this study. Methods: Patients who initiated RT between 1/7/19 and 6/30/19 at a single institution were evaluated by a ML algorithm to identify HR courses (>10% risk of acute visit during RT). HR patients were randomized to standard weekly (S) or intervention of twice weekly (TW) evaluation during RT. Cost data associated with acute visits were obtained and compared between patients who underwent S or TW evaluations. Missing cost data were imputed using disease related groups (DRGs). Mean costs (standard deviation) were compared between arms with non-parametric Wilcoxon Rank Sum tests. Results: 311 HR courses were identified and randomized to either S (n=157) or TW (n=154) evaluations during RT. 85 patients (S: 51; TW: 34) had 121 distinct acute care visits (S: 74; TW: 47). Patients in the TW evaluation arm had fewer hospitalizations (29 vs 41) and ER visits (18 vs 33) than those in the S arm. There were fewer acute visits per patient in the TW arm (0.34) compared to S arm (0.49). Actual cost data was available for 102 visits at our institution, and imputed for 19 outside hospital visits. Mean cost associated with acute visits was lower in the TW arm ($1939, SD $5912) compared with the S arm ($4002, SD $11568; p=0.03). Differences in mean cost between arms are presented in the table. Conclusions: ML-directed evaluations for HR patients undergoing RT resulted in decreased costs of ER visits and hospitalizations. Costs were decreased across revenue centers, with the largest difference related to inpatient room costs. Future analyses will incorporate intervention costs, which are currently bundled with RT reimbursement.[Table: see text]

Sign in / Sign up

Export Citation Format

Share Document