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Ownership Structure and Market Conduct among Swiss Banks

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Shaffer, Sherrill

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Abstract

This paper explores the degree of competition among each of several major categories of Swiss banks, using a structural econometric model. Conduct is found to vary across ownership structures, with foreign-owned banks exhibiting the most market power and state-owned or mutual banks the least. The results are consistent with agency theory but contrast with some previous empirical results. They are also consistent with a Swiss premium in the provision of international banking services, though this latter hypothesis is not formally tested. Copyright 2002 by Taylor and Francis Group

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 34 (2002)
Issue (Month): 16 (November)
Pages: 1999-2009
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:1999-2009

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  1. Nicola Cetorelli & Paolo Angelini, 1999. "Bank competition and regulatory reform: the case of the Italian banking industry," Working Paper Series WP-99-32, Federal Reserve Bank of Chicago. [Downloadable!]
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