Market Power in the Russian Banking Industry
AbstractThe aim of this paper is to analyze bank competition in Russia by measuring the market power of Russian banks and its determinants over the period 2001-2007 with the Lerner index. Earlier studies on bank competition have focused on developed countries whereas this paper contributes to the analysis of bank competition in emerging markets. We find that bank competition has only slightly improved during the period studied. The mean Lerner index for Russian banks is of the same magnitude as those observed in developed countries, which suggests that the Russian banking industry is not plagued by weak competition. Furthermore, we find no greater market power for state-controlled banks nor less market power for foreign-owned banks. We would consequently qualify the procompetitive role of foreign bank entry and privatization. Finally, our analysis of the determinants of market power enables the identification of several factors that influence competition, including market concentration and risk as well as t the nonlinear influence of size.
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.
Bibliographic InfoPaper provided by Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg (France) in its series Working Papers of LaRGE Research Center with number 2010-09.
Date of creation: 2010
Date of revision:
Contact details of provider:
Postal: 61, Avenue de la Forêt Noire, F-67085 Strasbourg Cedex
Phone: (33) 3 90 41 41 30
Fax: (33) 3 90 41 40 50
Web page: http://ifs.unistra.fr/large/
More information through EDIRC
Market power; bank competition; Russia.;
Other versions of this item:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- P34 - Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-03 (All new papers)
- NEP-BAN-2010-07-03 (Banking)
- NEP-CIS-2010-07-03 (Confederation of Independent States)
- NEP-COM-2010-07-03 (Industrial Competition)
- NEP-EFF-2010-07-03 (Efficiency & Productivity)
- NEP-REG-2010-07-03 (Regulation)
- NEP-TRA-2010-07-03 (Transition Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Vernikov, Andrei, 2010. "Direct and indirect state ownership on banks in Russia," MPRA Paper 21373, University Library of Munich, Germany.
- Fungacova, Zuzana & Weill, Laurent & Zhou, Mingming, 2010. "Bank capital, liquidity creation and deposit insurance," BOFIT Discussion Papers 17/2010, Bank of Finland, Institute for Economies in Transition.
- Anzoategui, Diego & Pería, María Soledad Martínez & Melecky, Martin, 2012. "Bank competition in Russia: An examination at different levels of aggregation," Emerging Markets Review, Elsevier, vol. 13(1), pages 42-57.
- Anzoategui, Diego & Soledad Martinez Peria, Maria & Melecky, Martin, 2010. "Banking sector competition in Russia," Policy Research Working Paper Series 5449, The World Bank.
- Ömer Ýskenderoglu & Serpil Tomak, 2013. "Competition and Stability: An Analysis of the Turkish Banking System," International Journal of Economics and Financial Issues, Econjournals, vol. 3(3), pages 752-762.
- Laurent Weill, 2011. "Bank Competition in the EU: How Has It Evolved?," Working Papers of LaRGE Research Center 2011-04, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg (France).
- Olga Pak & Mira Nurmakhanova, 2013. "The Effect of Market Power on Bank Credit Risk-Taking and Bank Stability in Kazakhstan," Transition Studies Review, Springer, vol. 20(3), pages 335-350, November.
- Fungácová, Zuzana & Pessarossi , Pierre & Weill , Laurent, 2012.
"Is bank competition detrimental to efficiency? Evidence from China,"
BOFIT Discussion Papers
31/2012, Bank of Finland, Institute for Economies in Transition.
- Fungáčová, Zuzana & Pessarossi, Pierre & Weill, Laurent, 2013. "Is bank competition detrimental to efficiency? Evidence from China," China Economic Review, Elsevier, vol. 27(C), pages 121-134.
- Phil Molyneux & Hong Liu & John O.S. Wilson, 2010. "Measuring Competition and Stability: Recent Evidence for European Banking," Working Papers 10020, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
- Andrei Vernikov, 2011. "Government Banking in Russia: Magnitude and New Features," IWH Discussion Papers 13, Halle Institute for Economic Research.
- Vernikov, Andrei, 2012.
"«Национальные Чемпионы» В Структуре Российского Рынка Банковских Услуг
[National champions and the competitive structure of the Russia," MPRA Paper 40236, University Library of Munich, Germany.
- Yong Tan & Christos Floros, 2013. "Market power, stability and performance in the Chinese banking industry," Economic Issues Journal Articles, Economic Issues, vol. 18(2), pages 65-90, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christophe J. Godlewski).
If references are entirely missing, you can add them using this form.