scholarly journals The market concentration and banking industry performance

2015 ◽  
Vol 13 (1) ◽  
pp. 1257-1264 ◽  
Author(s):  
Mohammed Salameh Anasweh
Keyword(s):  
Market Power ◽  
Banking Sector ◽  
Banking Industry ◽  
Stock Exchange ◽  
Power Structure ◽  
Industry Concentration ◽  
Empirical Results ◽  
Market Competitiveness ◽  
Traditional Structure ◽  
Industry Performance

This study examines the structure-profit relationship in the Qatari banking industry. The study sample consists of all the local banks operating in the market (13 banks) listed in Qatar Stock Exchange (QSE) over the 2009-2014 period. The hypotheses related to the market power structure which includes the traditional Structure-Conduct-Performance Hypothesis (SCP), and the traditional Efficiency Hypothesis (EH). The empirical results generally support the (SCP) Hypothesis in Qatari banking industry. Thus, the main implication of these results for the policymakers, of Qatari banking sector, is to expand the ongoing deregulation efforts with the aim of reducing the industry concentration and enhancing the market competitiveness.

Modeling S&P Bombay Stock Exchange BANKEX Index Volatility Patterns Using GARCH Model

2019 ◽  
pp. 259-268
Keyword(s):  
Time Series ◽  
Banking Sector ◽  
Stock Exchange ◽  
Time Lag ◽  
Garch Model ◽  
Recent Past ◽  
Volatility Clustering ◽  
Asymmetric Volatility ◽  
Empirical Results ◽  
Asymmetric Garch

The main objective of this chapter is to estimate volatility patterns in the case of S&P Bombay Stock Exchange (BSE) BANKEX index in India. In recent past, the Indian banking sector was one of the fastest-growing industries and all major banks have been included in S&P BANKEX index as index benchmark constituent companies. The financial econometric framework is based on asymmetric GARCH (1, 1) model which is performed in order to capture asymmetric volatility clustering and leptokurtosis. Data time lag is considered from the first transaction day of January 2002 to last transaction day of June 2014. The empirical results revealed the existence of volatility shocks in the selected time series and also volatility clustering. The volatility impact has generated highly positive clockwise and impacted actual stocks. Moreover, the empirical findings reveal that the BANKEX index grown over 17 times in 12 years and volatility returns have been found present in listed stocks.

scholarly journals Structure, market power, and profitability: evidence from the banking sector in Latin America

2021 ◽  
Vol 32 (85) ◽  
pp. 126-142
Author(s):  
Cristiano Hordones ◽  
Antonio Zoratto Sanvicente
Keyword(s):  
Latin America ◽  
Interest Rates ◽  
Market Structure ◽  
Market Power ◽  
Banking Sector ◽  
Banking Industry ◽  
Scientific Basis ◽  
Performance Model ◽  
Panel Data Regression ◽  
Banking Market

ABSTRACT The aim of this paper is to evaluate the influence of market structure on the competition between banks and to determine whether competition affects their profitability in different countries in Latin America. The study also seeks to compare, between 16 countries in the continent, the levels of concentration, competition, and profitability of the respective banking sectors. This article fills the research gap regarding the structure and market power of banks in emerging countries, by comparing Brazil with the other countries in the continent. The topic is extremely important at a time of debate about the high interest rates in Brazil, the market structure observed, and the alleged effect of this on the high levels of spread between lending and borrowing rates. The research provides evidence for the debate regarding the structure of the banking industry. To evaluate competition, the Panzar-Rosse model was used. Concentration was measured by the Herfindahl-Hirschman index and CR5 ratio. To verify the link between the variables, the hypotheses of the structure-conduct-performance model were tested, via a sample of 16 countries in Latin America, covering the period from 2011 to 2017, using panel data regression. This study, conducted for the banking industry in Latin America, rejected the premises of the structure-conduct-performance (SCP) model, which affirm that concentration reduces competition, causing higher profitability in the sector. In the comparison of the studied variables between the countries in the continent, Brazil presented the lowest competition index. The concentration and profitability assessments, in turn, presented results in line with the mean. The results of the research serve to elucidate the intense debate regarding the structure of the banking market. Moreover, they serve as a scientific basis for regulators’ actions, aiming to incentivize competition and reduce bank spread.

scholarly journals ANALISIS FAKTOR PENENTU STRUKTUR MODAL PERBANKAN DI INDONESIA

2007 ◽  
Vol 7 (3) ◽  
pp. 351
Author(s):  
Eleonora Sofilda ◽  
Maryani ,
Keyword(s):  
Capital Structure ◽  
Banking Sector ◽  
Banking Industry ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Financial Statement ◽  
Variable Size ◽  
Independent Variables ◽  
Independent Variable ◽  
Data Period

<p class="Style1"><em>The objective of this paper is to analyze the determinant factors of capital structure in </em><em>banking sector in Indonesia. The object of this paper includes 19 banks that have been </em><em>listed in Jakarta Stock Exchange. There are 5 variables, choosed as the measurement of </em><em>capital structure, those are: Size, Tangibility Non Debt Tax Shiekls, ProNabiNy and Depre-</em><em>ciation. Data analysis used in this paper is the financial statement of each bank and taken </em><em>from their balance sheet. The data period started from year 2003 until year 2005. This </em><em>paper finds that all independent variables affect dependent variable (capital structure) </em><em>simultaneously and partially. Independent variable size Kt tangibility (X2), NDTS (X), and </em><em>depreciation variable (X5) have insignificant effect to capital structure. Meanwhile, profitabil-</em><em>ity variable (X.) has significant effect to capita/ structure.</em></p><p class="Style1"><strong><em>Keywords: </em></strong><em>Capital Structure, Banking Industry</em></p>

ANALISIS TINGKAT RISIKO INVESTASI PADA SAHAM PERBANKAN YANG GO PUBLIC (Studi Kasus pada Saham BBNI dan BNII di Bursa Efek Indonesia Tahun 2007 – 2010)

2019 ◽  
Vol 8 (02) ◽  
pp. 121
Author(s):  
Adri Wihananto
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Banking Industry ◽  
Stock Exchange ◽  
Statistical Tests ◽  
Logical Consequence ◽  
Risk Groups ◽  
Significance Level ◽  
Private Banks ◽  
Level Of Risk

Indonesia's banking industry experienced ups and downs in recent years. Triggering high inflation volatility of performances and declines of stocks, which greatly affect the performance of Indonesian banks. The increase of stocks indicates the higher interest rates. Higher interest rates could inhibit lending that led to the decline in performance and declines of stocks listed at BEI. Seeing the Indonesian banking industry has not stabilized, the logical consequence faced by investors when deciding to make investments in the banking sector is uncertainty or risk. Risk will always overshadow in any investment decisions taken by investors. This study attempted to compare the level of investment risk from the two banking groups to determine which groups are more risky, so investors could know where a decent investment to be chosen. This study aimed to determine the level of risk groups of state-owned banks, private banks, the level of risk groups by using the trend method, and whether there are differences in risk of both groups.The research methodology used is the descriptive method approach to comparative. The data used is two banking shares listed on the Indonesia Stock Exchange consists of three state-owned bank shares (known as PT. Bank Negara Indonesia Tbk) and private banks (PT. Bank Internasional Indonesia Tbk) during the period 2007 - 2010. The calculation of both the stocks level of risk using standart deviasi, regresion, corelation by using SPSS 17.0 and have statistic test of two parties. From the calculations showed that there was difference in risk between state-owned banks and private banks. With words both state-owned banks and private banks not have the same risk. Due to the influnce of the policies issued by the goverment against the state-owned bank. Result of the statistical tests to PT. Bank Negara Indonesia Tbk. obtained didn’t significant result for the 0.002 with a significance level of 0.05, it can be concluded that there is no influence between the level of risk with the level of returns in the stock of BBNI. Based on the result of statistical tests on significant result obtained PT. Bank Internasional Indonesia Tbk. at 0.05 with a significance level of 0.05, it can be concluded that there is influence between the level of risk with the level of returns in the stock of BNII.Key words: Private Banks, State-owned Bank, the Level of Risk, the Level of Return.

scholarly journals Banking Competition and Efficiency: The Case of Vietnamese Banking Industry

2020 ◽  
Vol 11 (2) ◽  
pp. 453
Author(s):  
Long Hau Le ◽  
Truong An Duong ◽  
Tan Nghiem Le
Keyword(s):  
Market Power ◽  
Commercial Banks ◽  
Banking Industry ◽  
Negative Impact ◽  
Positive Impact ◽  
Market Competition ◽  
Annual Reports ◽  
Bank Efficiency ◽  
Empirical Results ◽  
The Impact

This paper is to investigate the impact of competition on the efficiency of the banking industry in Vietnam. Data are collected from the audited annual financial statements and the annual reports of 30 commercial banks during the period of 2010 – 2017. Lerner index is used to measure the market power of bank, while Data Envelope Analysis is employed to estimate the technical efficiency of bank. The impact of competition on the operational efficiency of commercial banks is estimated by Panel Vector Autoregressive model (PVAR). The empirical results seem to indicate that there is a positive impact of competition on the bank efficiency, which is in line with the “quiet-life” hypothesis. However, the statistical test does not confirm this at the traditional levels. Interestingly, the empirical results demonstrate a negative impact of bank efficiency on the market power of bank, and hence market competition. While this result shares the causality dimension with the “efficient structure” hypothesis, it presents an opposite sign on the causality. All these findings could be explained by the real situations and typical characteristics of the economy of Vietnam. This study has important implications for both researchers and practioners.

scholarly journals HUBUNGAN STRUKTUR MODAL DAN KINERJA KEUANGAN

2010 ◽  
Vol 9 (1) ◽  
Author(s):  
I Made Yogantara ◽  
Liliana Inggrit Wijaya
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Market Power ◽  
Banking Industry ◽  
Stock Exchange ◽  
Control Variable ◽  
Organization Structure ◽  
Institutional Ownership ◽  
Average Price ◽  
The Relationship

This study's aim is to test the relationship between capital structure and financial performance of the banking industry in Indonesian Stock Exchange. Institutional ownership, size, risk, market power, and organization structure were employed as control variable to test the affect of capital structure to the financial performance. Market average price of input, market average price of output, size, risk, and market power were employed as control variable to test the affect of financial performance to the capital structure. This study found that capital structure and it's quadrative form, institutional ownership, size, risk, market power, and organization structure simultaneously affect financial performance of the banking industry significantly. This study also found that financial performance and it’s quadrative form, market average price of input, market average price of output, size, risk, and market power simultaneously unaffect capital structure of the banking industry significantly.

Optimal Hedge Ratio and Hedging Effectiveness in Stock Futures Market: Evidence from National Stock Exchange, India

2019 ◽  
Vol 118 (3) ◽  
pp. 137-152
Author(s):  
A. Shanthi ◽  
R. Thamilselvan
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Research Work ◽  
Futures Market ◽  
Least Square ◽  
Time Varying ◽  
Hedge Ratio ◽  
Hedging Effectiveness ◽  
Out Of Sample ◽  
Optimal Hedge

The major objective of the study is to examine the performance of optimal hedge ratio and hedging effectiveness in stock futures market in National Stock Exchange, India by estimating the following econometric models like Ordinary Least Square (OLS), Vector Error Correction Model (VECM) and time varying Multivariate Generalized Autoregressive Conditional Heteroscedasticity (MGARCH) model by evaluating in sample observation and out of sample observations for the period spanning from 1st January 2011 till 31st March 2018 by accommodating sixteen stock futures retrieved through www.nseindia.com by considering banking sector of Indian economy. The findings of the study indicate both the in sample and out of sample hedging performances suggest the various strategies obtained through the time varying optimal hedge ratio, which minimizes the conditional variance performs better than the employed alterative models for most of the underlying stock futures contracts in select banking sectors in India. Moreover, the study also envisage about the model selection criteria is most important for appropriate hedge ratio through risk averse investors. Finally, the research work is also in line with the previous attempts Myers (1991), Baillie and Myers (1991) and Park and Switzer (1995a, 1995b) made in the US markets

Measurement of Vulnerability of Financial Portfolio of Sharia Commercial Banks by Cardona Method

2017 ◽  
Vol 9 (2) ◽  
pp. 109
Author(s):  
Paulina Harun ◽  
Atman Poerwokoesoemo
Keyword(s):  
Commercial Banks ◽  
Quantitative Research ◽  
Banking Sector ◽  
Banking Industry ◽  
Policy Makers ◽  
Factors Affecting ◽  
Section Data ◽  
Initial Stage ◽  
The Face ◽  
Asset Portfolio

his study aims to: (1) to know and analyze the extent of volatility (vulnerability) of sharia banking industry in Indonesia in the face of competition (2) to know and analyze factors affecting vulnerability of sharia commercial banks; (3) to know and analyze the extent of sustainable development of sharia banking industry to Indonesia's economic development.The research conducted to measure the vulnerability (volatility) of proto folio of syariah bank using observation period 2015, and the data used is cross section data. The research design used in this research is quantitative research, using asset dimension (asset portfolio, liability portfolio, equity portfolio) and stressor (pressure, including: credit risk, market risk, and liquidity risk).The activity plan of this research is: in the initial stage of conducting theoretical study related to the vulnerability related to banking especially BUS; The next step is to determine the asset and stressor dimensions associated with the BUS; Further determine the indicators related to assets and stressors; The next step performs calculations to determine the index of each BUS as well as the dimensions that affect the vulnerabilities faced by each BUS.Target expected outcomes can be generated from this research is: for the object of research (BUS) provide a solution for BUS to deal with and overcome the vulnerabilities encountered and policies that must be done. For policy makers, the results of this study are expected to provide input in decision-making and other policies.Measurement of vulnerability to be performed related to banking operations in the face of competition and the continuity of BUS in Indonesia. The outcomes of this study are expected to be included in Bank Indonesia journals, the selection of this journal is based on studies conducted in the banking sector, especially BUS in Indonesia.

Collusion in the Turkish Banking Sector

2012 ◽  
Author(s):  
Resul Aydemir
Keyword(s):  
Banking Sector ◽  
Structural Model ◽  
Banking Industry ◽  
Market Concentration ◽  
Regulatory Agencies ◽  
Sample Period ◽  
Conjectural Variation ◽  
Average Mark ◽  
Market Conduct ◽  
Variation Approach

In this paper, I consider the Turkish Banking Industry, which is dominated by a few large banks. Using a conjectural variation approach, I estimate a structural model to examine the market conduct of the largest banks for the period 1988-2009. Estimation results suggest that the Turkish banks colluded in the loan market during the sample period where the average mark-up is estimated to be in the range of 44% to 86% depending on the empirical specification. This evidence demonstrates a conflict between market concentration and competition in the Turkish banking industry. Thus, regulatory agencies should be cautious against attempts to increase concentration in the banking industry.

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