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A new approach to measuring competition in the loan markets of the euro area Author info | Abstract | Publisher info | Download info | Related research | Statistics Michiel van Leuvensteijn
Jacob Bikker
Adrian van Rixtel
Christoffer Kok-Sorensen
Additional information is available for the following
registered author(s):
This paper is the first that applies a new measure of competition, the Boone indicator, to the banking industry. This approach is able to measure competition of bank market segments, such as the loan market, whereas many well-known measures of competition can consider the entire banking market only. Like most other model-based measures, this approach ignores differences in bank product quality and design, as well as the attractiveness of innovations. We measure competition on the lending markets in the five major EU countries as well as, for comparison, the UK, the US and Japan. Our findings indicate that over the period 1994-2004 the US had the most competitive loan market, whereas overall loan markets in Germany and Spain were among the best competitive in the EU. The Netherlands occupied a more intermediate position, whereas in Italy competition declined significantly over time. The French, Japanese and UK loan markets were generally less competitive. Turning to competition among specific types of banks, commercial banks tend to be more competitive, particularly in Germany and the US, than savings and cooperative banks.
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Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number
143.
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Date of creation: Aug 2007Date of revision:
Handle: RePEc:dnb:dnbwpp:143Contact details of provider: Postal: Postbus 98, 1000 AB Amsterdam Web page: http://www.dnb.nl/dnb/home?lang=en More information through EDIRC
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Keywords: Banking industry competition loan markets marginal costs market shares. Other versions of this item:
Paper Michiel van Leuvensteijn & Jacob A. Bikker & Adrian A.R.J.M. van Rixtel & Christoffer Kok-Sørensen, 2007.
"A new approach to measuring competition in the loan markets of the euro area ,"
CPB Discussion Papers
84, CPB Netherlands Bureau for Economic Policy Analysis.
[Downloadable!] Michiel van Leuvensteijn & Jacob A. Bikker & Adrian van Rixtel & Christoffer Kok-Sørensen, 2007.
"A new approach to measuring competition in the loan markets of the euro area ,"
Banco de España Working Papers
0736, Banco de España.
[Downloadable!] Michiel van Leuvensteijn & Jacob A. Bikker & Adrian A.R.J.M. van Rixtel & Christoffer Kok-Sørensen∗, 2007.
"A new approach to measuring competition in the loan markets of the euro area ,"
CEI Working Paper Series
2007-6, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
[Downloadable!] Michiel van Leuvensteijn & Jacob A. Bikker & Adrian A.R.J.M. van Rixtel & Christoffer Kok Sørensen, 2007.
"A new approach to measuring competition in the loan markets of the euro area ,"
Working Paper Series
768, European Central Bank.
[Downloadable!] Find related papers by JEL classification: C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data G3 - Financial Economics - - Corporate Finance and Governance
This paper has been announced in the following NEP Reports :
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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