Banking Market Competition, Firm Dynamics, and Aggregate Growth

2011 ◽  
Author(s):  
Felix Noth ◽  
Michael Koetter ◽  
Robert Inklaar
Keyword(s):  
Market Competition ◽  
Firm Dynamics ◽  
Banking Market ◽  
Aggregate Growth

The relationship between banking market competition and risk-taking: Do size and capitalization matter?

2012 ◽  
Vol 36 (12) ◽  
pp. 3366-3381 ◽  
Author(s):  
Benjamin M. Tabak ◽  
Dimas M. Fazio ◽  
Daniel O. Cajueiro
Keyword(s):  
Risk Taking ◽  
Market Competition ◽  
Banking Market ◽  
The Relationship

scholarly journals CEO EXTRAVERSION AND CAPITAL STRUCTURE DECISIONS: THE ROLE OF FIRM DYNAMICS, PRODUCT MARKET COMPETITION, AND FINANCIAL CRISIS

2020 ◽  
Vol 43 (4) ◽  
pp. 847-893
Author(s):  
Theophilus Lartey ◽  
Kwabena Kesse ◽  
Albert Danso
Keyword(s):  
Financial Crisis ◽  
Capital Structure ◽  
Market Competition ◽  
Product Market ◽  
Firm Dynamics ◽  
Product Market Competition

scholarly journals Firm Dynamics and Aggregate Growth: The Case of Hungary

2018 ◽  
Vol 2017 (2) ◽  
pp. 68-98
Author(s):  
Péter Bauer ◽  
Marianna Endrész
Keyword(s):  
Firm Dynamics ◽  
Aggregate Growth

scholarly journals Concentration and Competition in the Albanian Banking Sector

2015 ◽  
Vol 2 (1) ◽  
pp. 168 ◽  
Author(s):  
Eleana Lici ◽  
Irena Boboli
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Market Competition ◽  
Banking System ◽  
External Financing ◽  
Low Level ◽  
Banking Market ◽  
The Government ◽  
High Level

Albania has a relatively new financial system, where banking system is the most developed financial service in our country, with a share of 94, 4% of the total financial services. This is a phenomenon of countries with emerging economies, which proves that there is greater reliance on the state economic development of the banking sector, by effecting from the households to the biggest investors and the government. As in any market, competition is important for the banking sector because, it affects the efficiency and the quality of services offered. Furthermore, competition in banking has also implications for other sectors of the economy. So, higher competition in the banking sector is found to be associated with a faster growth of other sectors of the economy that rely on external financing. The main goal of this paper is to understand the characteristics of competition in our banking system and study the relationship between the level of concentration and competition. We are going to measure the concentration by the “H” indices. The “H” (Herfindaflit) indices is a measure of the level of the concentration of the banking system of a country. A high level of the indices shows a high level of concentration and as a consequence a low level of competition. A low level of the indices shows a low level of concentration which is sign of a banking market with a high competition.

scholarly journals Consolidation of the Banking Sector: Determinants and Consequences

2021 ◽  
Vol 1 (47) ◽  
pp. 98-106
Author(s):  
I. V. Krasnova ◽  
◽  
A. V. Nikitin ◽  
V. H. Shevaldina ◽  
◽  
...  
Keyword(s):  
Banking Sector ◽  
Financial Integration ◽  
Market Competition ◽  
Banking Services ◽  
Competitive Intensity ◽  
Functional Strategy ◽  
Banking Market ◽  
Banking Concentration ◽  
Market Consolidation ◽  
The Relationship

The article aims at substantiating the theoretical and methodological foundations of research in bank consolidation and assessing its consequences in order to identify the relationship between consolidation and the banking market structure. The main preconditions and priorities of consolidation are systematized and generalized, taking into account the theory of financial integration and synergetic interaction. This approach will contribute to deeper understanding of the motives and trends of consolidation in modern conditions. It is noted that the transnationalization and concentration of capital form the basis for market consolidation, which goes through a certain life cycle, the latter being specified by the authors. It is concluded that the universal, integrated nature of financial business and the formation of financial business ecosystems is becoming more widespread. The main changes in financial mediation are identified. Statistics of banking concentration in Ukraine is given. The dynamics of concentration ratio for the period from January 1, 2000 to August 1, 2020 was analyzed, revealing that the market is moderately concentrated. It is stipulated that the higher the combined share of the five major banks in the banking sector, the less likely a domestic merger and acquisition is. Accordingly, the domestic banking market, compared to European ones, has significant potential. It is concluded that the high values of profitability indicators speak of excess demand over supply in the banking market; thus, competitive intensity under such conditions is minimal, even with the withdrawal of most banks from the market. Thus, competition is only declared. In the future, we should expect increased non-interest rate competition. It is noted that competitive intensity depends on the concentration, dynamics and profitability of the banking market. Competition assessment, carried out using non-structural measures, H-statistics, Boone indicators and Lerner index, showed that, since the an individual bank does not build up its range of activity through consolidation, or by redistributing its market share among participants, but due to the growing demand for banking services, and remote services in particular, competition is actually reduced. The research confirmed that the processes of concentration, consolidation and competition are interconnected, and this connection should be identified to better understand the formation of the banks’ functional strategy and their choice of the business model.

scholarly journals Firm Dynamics, On-the-Job Search and Labor Market Fluctuations

2021 ◽  
Author(s):  
Michael W L Elsby ◽  
Axel Gottfries
Keyword(s):  
Labor Market ◽  
Job Search ◽  
Market Competition ◽  
Labor Demand ◽  
Firm Dynamics ◽  
Negative Association ◽  
Marginal Product ◽  
Worker Flows ◽  
Fundamental Challenge ◽  
Rent Sharing

Abstract We devise a tractable model of firm dynamics with on-the-job search. The model admits analytical solutions for equilibrium outcomes, including quit, layoff, hiring and vacancy-filling rates, as well as the distributions of job values, a fundamental challenge posed by the environment. Optimal labor demand takes a novel form whereby hiring firms allow their marginal product to diffuse over an interval. The evolution of the marginal product over this interval endogenously exhibits gradual mean reversion, evoking a notion of imperfect labor market competition. This in turn contributes to dispersion in marginal products, giving rise to endogenous misallocation. Quantitatively, the model provides a parsimonious reconciliation of leading estimates of rent sharing, the negative association between wages and quits, the link between job and worker flows, and the cyclicality of labor market quantities and prices.

scholarly journals Banking market competition in Europe—financial stability or fragility enhancing?

2019 ◽  
Vol 3 (2) ◽  
pp. 257-285 ◽  
Author(s):  
Kalle Ahi ◽  
◽  
Laivi Laidroo
Keyword(s):  
Financial Stability ◽  
Market Competition ◽  
Banking Market

Banking Market Competition and Corporate Innovation

2015 ◽  
Author(s):  
Lin Tian ◽  
Liang Han ◽  
Shengnian Wang
Keyword(s):  
Market Competition ◽  
Corporate Innovation ◽  
Banking Market

scholarly journals COMPETITIVE CONDITIONS IN BANKING INDUSTRY: AN EMPIRICAL ANALYSIS OF THE CONSOLIDATION, COMPETITION AND CONCENTRATION IN THE INDONESIA BANKING INDUSTRY BETWEEN 2001 AND 2009

2012 ◽  
Vol 14 (2) ◽  
pp. 151-186
Author(s):  
Tri Mulyaningsih ◽  
Anne Daly
Keyword(s):  
Mergers And Acquisitions ◽  
Banking Industry ◽  
Market Competition ◽  
Market Concentration ◽  
Jel Classification ◽  
Competitive Market ◽  
Financial Report ◽  
Conventional View ◽  
The Past ◽  
Banking Market

Few large banks dominate the Indonesia banking industri. Furthermore, in the past ten years, there were a series of mergers and acquisitions in the banking market. The facts cause implications on competition. In this paper, we examine these issues exploiting an unconsolidated annual financial report of all commercial banks between 2001 and 2009. The Panzar-Rose method is employed to examine the banks behavior in competition. Estimates indicate that banks in all three subsamples, large; medium-sized and small are working in a monopolistically competitive market. The analysis of market concentration supports the conventional view that concentration impairs competition. The study shows that the most competitive market was the medium-sized banks because it was least concentrated. In contrast, the large market was more concentrated thus it was less competitive. The consolidation policies driven by the Central Bank reduced market concentration because mergers and acquisitions were mostly conducted by the mediumsized and small banks. Further the improvement of market share distribution and the increasing capacity of the merging banks enhanced competition in the Indonesia banking industry. JEL Classification: D43, G21Keywords: Banking, market competition, market structure

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