Market Power in European Banking Sectors
AbstractThis study analyses the evolution of market power in the banking sectors of the European Union based on the estimation of Lerner indices. Using a panel of 18,810 observations of the banking industries of Germany, France, Italy, Spain and the United Kingdom during the period 1992-99, the results show substantial differences between countries. The evolution of the Lerner index does not show an increase in the degree of competition within the EU, despite the liberalisation measures implemented in order to create a single banking market. The study discusses the limitations to the interpretation of the Lerner index as an indicator of the degree of competition, and analyses its determining factors. Este trabajo analiza la evoluciÃ³n del poder de mercado en los sectores bancariosde la UniÃ³n Europea a partir de la estimaciÃ³n de Ãndices de Lerner. Utilizando un panelde 18,810 observaciones de los sectores bancarios de Alemania, Francia, Italia, EspaÃ±ay Reino Unido durante de periodo 1992-99, los resultados muestran importantesdiferencias por paÃses, siendo los sectores bancarios del Reino Unido e Italia los quepresentan mayores valores del Ãndice. La evoluciÃ³n del Ãndice de Lerner en el periodoanalizado no muestra un aumento en el grado de competencia en el seno de la UE, apesar de las medidas liberalizadoras implementadas con objeto de crear un mercadoÃºnico bancario. El trabajo discute las limitaciones a la interpretaciÃ³n del Ãndice deLerner como indicador del grado de competencia y analiza sus factores determinantes.A este respecto, la concentraciÃ³n del mercado, el tamaÃ±o de las empresas y el riesgoaparecen como variables significativas. En el caso de la concentraciÃ³n, la influencianegativa en el mercado de depÃ³sitos y no siendo significativa en el mercado deprÃ©stamos permiten rechazar la hipÃ³tesis de colusiÃ³n.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Financial Services Research.
Volume (Year): 27 (2005)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102934
Market power; competition; European banking sectors;
Other versions of this item:
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
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