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Consolidation and market structure in emerging market banking systems

  • Gelos, R. G.
  • Roldos, Jorge

This paper examines the evolution of market structure in emerging market banking systems during the 1990s. While significant bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associated with increased concentration as measured by standard indices. Moreover, econometric estimates based on the Panzar-Rosse (1987) methodology suggest that, overall, markets have not become less competitive in a sample of eight European and Latin American countries. Lowering barriers to entry, by doing such things as allowing increased participation of foreign banks, appears to have prevented a decline in competitive pressures associated with consolidation.

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Article provided by Elsevier in its journal Emerging Markets Review.

Volume (Year): 5 (2004)
Issue (Month): 1 (March)
Pages: 39-59

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Handle: RePEc:eee:ememar:v:5:y:2004:i:1:p:39-59
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