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Benchmark And Trend Analysis Of The Competition In Banking Sector

Author

Listed:
  • Belobrov, Angela

    (Academy of Economic Studies of Moldova,)

Abstract

Competition in the banking sector brings a wide range of benefits: to clients-individuals, to clients-legal and as a whole to the economic development. Comparing to other sectors, where competition policies are oriented towards the promotion of a level near to a perfect competition, the banking sector faces a continuous trade-off between competition and stability: too much competition increases instability, but too little competition will also have dire consequences for consumers. There is a number of researches dedicated to this problem, however until today a consensus have not been reached yet. In the absence of this consensus, were decided to be applied to the benchmarking analysis. In addition, trend analysis identifies which areas are getting worse. For this purpose were selected a list of 8 countries in the region that are comparable either by territorial size, population size or cultural characteristics, including Armenia, Estonia, Latvia, Moldova, Romania, Russian Federation, Slovak Republic and Ukraine. The study contain analysis of concentration indices and of measures of market power. The results of the study emphasize the existence of different levels of concentration and performances on the banking markets of the analyzed countries, as well as some similarities which allowed us to make some conclusions and recommendations.

Suggested Citation

  • Belobrov, Angela, 2018. "Benchmark And Trend Analysis Of The Competition In Banking Sector," Management Strategies Journal, Constantin Brancoveanu University, vol. 42(4), pages 140-150.
    • Handle: RePEc:brc:journl:v:42:y:2018:i:4:p:140-150
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    References listed on IDEAS

    as
    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Sebastian Jose de-Ramon & Michael Straughan, 2017. "Competition indicators for the UK deposit-taking sector," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Statistical implications of the new financial landscape, volume 43, Bank for International Settlements.
    3. Filippo Curti & Ibrahim Ergen & Minh Le & Marco Migueis & Rob T. Stewart, 2016. "Benchmarking Operational Risk Models," Finance and Economics Discussion Series 2016-070, Board of Governors of the Federal Reserve System (U.S.).
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    More about this item

    Keywords

    competition; banking sector; market power; market concentration; benchmarking analysis; trend analysis;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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