The Competitive Advantage of Incumbents: Evidence from Newly Liberalized Banking Industries
AbstractThe paper analyzes banking competition in newly liberalized banking industries, where the incumbent banks still dominate the deposit market but are exposed to substantial loan market competition. We argue that incumbent banks, due to their preferential position in the deposit market, are able to generate higher margins than new entrants. Moreover, margins of new entrants are negatively affected by the incumbents' preferential position in the deposit market. The analysis is based on data from 296 banks from ten Central and Eastern European countries for the period 1995-2004.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 167 (2011)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.mohr.de/jite
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dinger, Valeriya & von Hagen, Jürgen, 2008.
"Does Interbank Borrowing Reduce Bank Risk?,"
CEPR Discussion Papers
6635, C.E.P.R. Discussion Papers.
- Dinger, Valeriya & Hagen, Jürgen von, 2007. "Does Interbank Borrowing Reduce Bank Risk?," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 223, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Lars Norden & Martin Weber, 2010. "Funding Modes of German Banks: Structural Changes and their Implications," Journal of Financial Services Research, Springer, vol. 38(2), pages 69-93, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).
If references are entirely missing, you can add them using this form.