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Financial Crises, Concentration and Efficiency: Effects on Performance and Risk of Banks

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Listed author(s):
  • Sergio SANFILIPPO AZOFRA

    (University of Cantabria, Business Administration Faculty, Spain)

  • Maria CANTERO SAIZ

    (University of Cantabria, Business Administration Faculty, Spain)

  • Begona TORRE OLMO

    (University of Cantabria, Business Administration Faculty, Spain)

  • Carlos LOPEZ GUTIERREZ

    ()

    (University of Cantabria, Business Administration Faculty, Spain)

Registered author(s):

    Abstract

    This paper analyzes the changes that financial crises cause in the relationship between bank market share, efficiency and profitability, as well as in the relationship between market concentration and risk. The empirical analysis was performed on a sample of 15,399 banks from major OECD countries over the period 2002–2009. The results show that market power was replaced by efficiency as the main determinant of bank profitability during the crisis. Prior to the crisis, market concentration and risk had a quadratic relationship, while thereafter the increase in market concentration produced no increase in risk.

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    Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.

    Volume (Year): 63 (2013)
    Issue (Month): 6 (December)
    Pages: 537-558

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    Handle: RePEc:fau:fauart:v:63:y:2013:i:6:p:537-558
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    Keywords: financial crisis; performance; risk; banks;

    Find related papers by JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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