Consolidation and Market Structure in Emerging Market Banking Systems

By R. G. Gelos, Jorge Roldos. Social Science Research Network, 2002

348 citations recorded by the source corpus.

This paper examines the evolution of market structure in emerging market banking systems during the 1990s. While significant bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associated with increased concentration as measured by standard indices. Moreover, econometric estimates based on the Panzar-Rosse (1987) methodology suggest that, overall, markets have not become less competitive in a sample of eight European and Latin American countries. Lowering barriers to entry, by doing such things as allowing increased participation of foreign banks, appears to have prevented a decline in competitive pressures associated with consolidation.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/f9c7480a078332efc7706de5d60d375ad465d792

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Citations in the corpus

Competitive conditions in Islamic and conventional banking: A global perspective (2010, background): “Consistent with Molyneux, Thornton, and LloydWilliams (1996), Bikker and Haaf (2002), Gelos and Roldos (2004) and Claessens and Laeven (2004), the analysis includes other bank-specific control variables.”
Restructuring, consolidation and competition in Latin American banking markets☆ (2007, background): “11 In a related paper Yeyati and Micco (2003b) find that foreign participation is associated with weaker”
Understanding Banking Sector Globalization (2009, background): “…countries have been researched extensively—see BIS (2001) and the volume’s overview by Hawkins and Mihaljek (2001)—on average, evidence suggests that consolidation has been occurring without deterioration of the competitiveness of a country’s financial services industry (Gelos and Roldos, 2002).”
Do foreign banks increase competition? Evidence from emerging Asian and Latin American banking markets (2011, background): “16 For other measures of banking market concentration, see Gelós and Roldós (2004).”
Determinants of bank profitability in the South Eastern European region (2008, background): “…come as a surprise, partly because the state-owned banks, prior to their privatisation to strategic (and mostly foreign) investors, suffered from a sharp drop in their market share, and partly due to the ongoing consolidation effort of the sector to clean up its operations (Gelos and Roldos, 2004).”
Financial liberalization, prudential supervision, and the onset of banking crises (2004, background): “Furthermore, the institutions that 5 De Nicoló et al. (2003) and Gelos and Roldós (2004) present empirical evidence of trends during the last two decades in consolidation, internationalization, and conglomeration within the financial sector worldwide.”
Competition and risk in South East Asian commercial banking (2012, background): “…et al., 1994, 1996; Hondroyiannis et al., 1999; De Bandt and Davis, 2000; Bikker and Haaf, 2002; Claessens and Laeven, 2004; Coccorese, 2004, 2009; Gelos and Roldos, 2004; Casu and Girardone, 2006; Staikouras and Koutsomanoli-Fillipaki, 2006; Yuan, 2006; Matthews et al., 2007; Yeyati and Micco,…”
Banking Competition and Efficiency: A Micro-Data Analysis on the Czech Banking Industry (2008, background): “Hempell, 2002; Weill, 2004), and also by Gelos and Roldos (2004) in eight emerging”
Foreign Banks in Poor Countries: Theory and Evidence (2008, positive): “Foreign bank entry in developing countries also appears to lower interest margins and profitability, suggesting an increase in competition (Claessens, Demirgüç-Kunt, and Huizinga, 2001; Gelos and Roldós, 2004; Micco, Panizza and Yañez, 2004; Martinez Peria and Mody, 2004).”