Determinants of bank market structure: efficiency and political economy variables
By F. González. 2009
195 citations recorded by the source corpus.
This paper analyzes the influence of bank efficiency and political economy variables on bank market structure (market share and market concentration) using a panel data of 2,592 banks from 69 countries over the 1996-2002 period. Results indicate that the validity of the efficiency-structure hypothesis to explain bank market structure varies across countries depending on national political economy variables. In particular, higher entry requirements, more generous deposit insurance and higher extent of government bank ownership reduce the positive influence of bank efficiency on market share and market concentration. However, tighter restrictions on bank activities, better quality of the contracting environment, more market monitoring, and more market orientation and development of the financial system increase the positive influence of bank efficiency on market share and market concentration.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/8b40f18a5087b5d10026f79d5c8f7762d332510b
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Citations in the corpus
- Banking Sector Performance in Latin America: Market Power Versus Efficiency (2011, unknown): “performance. Gonzalez (2005) analyses efficiency and market power of the banking”
- What are the driving forces of bank competition across different income groups of countries (2014, background): “For instance, as argued in González (2009), bank concentration may be associated with stricter bank-entry restrictions, more generous insurance, and a stronger legal environment.”