Increasing concentration in european banking: a macro-level analysis
AbstractThe recent wave of mergers and acquisitions in the European banking sector has raised concerns that bank profitability will rise because of less competitive market conditions. This paper analyses the relationship between concentration, competitiveness, efficiency and profitability in the European banking markets by using panel regressions. Estimates from various recent studies on competition and efficiency in national banking sectors are related to concentration and profitability indicators for these sectors. Our results do not suggest the existence of any connection at the macro-level between concentration and competition. There is also no robust relationship between concentration and profitability.
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Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series WO Research Memoranda (discontinued) with number 743.
Length: 26 pages
Date of creation: Sep 2003
Date of revision:
banking; concentration; competition; market structure;
Find related papers by JEL classification:
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-10-12 (All new papers)
- NEP-COM-2003-10-12 (Industrial Competition)
- NEP-EEC-2003-10-12 (European Economics)
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