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Competition in the banking sector: New evidence from a panel of emerging market economies and the financial crisis

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  • Apergis, Nicholas

Abstract

This paper assesses competition across the banking systems in emerging market economies. The analysis employs the Panzar and Rosse (1987) methodology, spanning the period 2000–2012. The analysis emphasises the impact of the recent financial crisis on the extent of competition in these banking systems. The empirical findings are robust and consistent with those of previous studies, providing sufficient evidence in favour of monopolistic competition across all countries under investigation. The level of competition in these banking sectors seems to have undergone a significant decline after the recent financial crisis. This finding receives robust support from an alternative methodological approach.

Suggested Citation

  • Apergis, Nicholas, 2015. "Competition in the banking sector: New evidence from a panel of emerging market economies and the financial crisis," Emerging Markets Review, Elsevier, vol. 25(C), pages 154-162.
  • Handle: RePEc:eee:ememar:v:25:y:2015:i:c:p:154-162
    DOI: 10.1016/j.ememar.2015.08.001
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:intfin:v:50:y:2017:i:c:p:135-155 is not listed on IDEAS
    2. repec:eee:riibaf:v:42:y:2017:i:c:p:591-604 is not listed on IDEAS
    3. Wanke, Peter & Maredza, Andrew & Gupta, Rangan, 2017. "Merger and acquisitions in South African banking: A network DEA model," Research in International Business and Finance, Elsevier, vol. 41(C), pages 362-376.
    4. Nguyen, My & Perera, Shrimal & Skully, Michael, 2016. "Bank market power, ownership, regional presence and revenue diversification: Evidence from Africa," Emerging Markets Review, Elsevier, vol. 27(C), pages 36-62.

    More about this item

    Keywords

    Banking; Monopolistic competition; Panel data; Panzar–Rosse index; Adjusted-Lerner index; Emerging markets;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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