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Bank competition in Russia: An examination at different levels of aggregation

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  • Anzoategui, Diego
  • Pería, María Soledad Martínez
  • Melecky, Martin

Abstract

We analyze bank competition in Russia at different levels of aggregation. First, we compute a country-level measure of competition and compare it to that for similar-sized economies. Second, we contrast competition across different groups of banks in Russia. Third, we analyze bank competition across Russian regions. We find that banks in Russia are less competitive than those in Brazil, but more so than those in China and India. Large and state-owned banks exert more market power than others. Finally, competition is stronger in regions where there is less bank concentration, greater presence of banks, and greater financial and/or economic development.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:ememar:v:13:y:2012:i:1:p:42-57
    DOI: 10.1016/j.ememar.2011.09.004
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    Cited by:

    1. Canan Yildirim, 2014. "Competition in Turkish Banking: Impacts of Restructuring and the Global Financial Crisis," The Developing Economies, Institute of Developing Economies, vol. 52(2), pages 95-124, June.
    2. Fungáčová, Zuzana & Herrala, Risto & Weill, Laurent, 2013. "The influence of bank ownership on credit supply: Evidence from the recent financial crisis," Emerging Markets Review, Elsevier, vol. 15(C), pages 136-147.
    3. Diego Anzoategui & Mali Chivakul & Wojciech Maliszewski, 2015. "Financial Distortions in China; A General Equilibrium Approach," IMF Working Papers 15/274, International Monetary Fund.
    4. Yang, Jun & Shao, Hanhua, 2016. "Impact of bank competition on the bank lending channel of monetary transmission: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 468-481.
    5. Alexander Karminsky & Alexander Kostrov, 2014. "The probability of default in Russian banking," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 81-98, June.
    6. Memić Deni, 2015. "Banking Competition and Efficiency: Empirical Analysis on the Bosnia and Herzegovina Using Panzar-Rosse Model," Business Systems Research, De Gruyter Open, vol. 6(1), pages 72-92, March.
    7. Efthyvoulou, Georgios & Yildirim, Canan, 2014. "Market power in CEE banking sectors and the impact of the global financial crisis," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 11-27.
    8. Love, Inessa & Peria, Maria Soledad Martinez, 2012. "How bank competition affects firms'access to finance," Policy Research Working Paper Series 6163, The World Bank.
    9. Gurova Yelena Pavlovna, 2014. "Stability of the regional banking systems in the crisis and post-crisis periods," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 4, pages 237-245.
    10. Yelena Gurova, 2014. "Stability Of The Regional Banking Systems In The Crisis And Post-Crisis Periods," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 237-245.
    11. Tai-Hsin Huang & Nan-Hung Liu, 2014. "Bank competition in transition countries: Are those markets really in equilibrium?," Empirical Economics, Springer, vol. 47(4), pages 1283-1316, December.
    12. repec:spr:pharme:v:4:y:2014:i:1:p:81-98 is not listed on IDEAS
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    14. Lee, Chien-Chiang & Hsieh, Meng-Fen & Yang, Shih-Jui, 2016. "The effects of foreign ownership on competition in the banking industry: The key role of financial reforms," Japan and the World Economy, Elsevier, vol. 37, pages 27-46.
    15. Vernikov, Andrei, 2012. "«Национальные Чемпионы» В Структуре Российского Рынка Банковских Услуг
      [National champions and the competitive structure of the Russian banking market]
      ," MPRA Paper 40236, University Library of Munich, Germany.
    16. Alexander Karminsky & Alexander Kostrov & Taras Murzenkov, 2012. "Comparison of default probability models: Russian experience," HSE Working papers WP BRP 06/FE/2012, National Research University Higher School of Economics.
    17. Thanh Pham Thien Nguyen & Son Hong Nghiem & Eduardo Roca & Parmendra Sharma, 2016. "Efficiency, innovation and competition: evidence from Vietnam, China and India," Empirical Economics, Springer, vol. 51(3), pages 1235-1259, November.
    18. Davydov, Denis & Nikkinen, Jussi & Vähämaa, Sami, 2014. "Does the decision to issue public debt affect firm valuation? Russian evidence," Emerging Markets Review, Elsevier, vol. 20(C), pages 136-151.
    19. Davydov, Denis & Vähämaa, Sami, 2013. "Debt source choices and stock market performance of Russian firms during the financial crisis," Emerging Markets Review, Elsevier, vol. 15(C), pages 148-159.
    20. Karminsky, A. & Kostrov, A., 2013. "Modeling the Default Probabilities of Russian Banks: Extended Abillities," Journal of the New Economic Association, New Economic Association, vol. 17(1), pages 64-86.
    21. Kouki, Imen & Al-Nasser, Amjad, 2017. "The implication of banking competition: Evidence from African countries," Research in International Business and Finance, Elsevier, vol. 39(PB), pages 878-895.
    22. 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.
    23. Triki, Thouraya & Kouki, Imen & Dhaou, Mouna Ben & Calice, Pietro, 2017. "Bank regulation and efficiency: What works for Africa?," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 183-205.

    More about this item

    Keywords

    Bank competition; Market structure;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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