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Does Banking System Transparency Enhance Bank Competition? Cross-Country Evidence

Author

Listed:
  • I. Andrievskaya
  • M. Semenova.

Abstract

There seems to be a consensus among regulators and scholars that in order to improve the functioning of a banking system and to stimulate bank competition, it is necessary to raise the level of bank information transparency. To test the hypothesis that greater bank information disclosure is associated with lower market power and lower concentration in the banking system, we use country-level data covering 213 countries all over the world. The period under consideration includes the years 2001, 2005 and 2010, which correspond to the years of the World Bank’s Banking Regulation and Supervision Survey rounds. Our findings do not always support the conventional wisdom: countries with higher levels of transparency have lower levels of bank concentration, while the link between transparency and competition is less pronounced. Moreover, the effect from information disclosure declines with an increase of bank risks.

Suggested Citation

  • I. Andrievskaya & M. Semenova., 2014. "Does Banking System Transparency Enhance Bank Competition? Cross-Country Evidence," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 9.
  • Handle: RePEc:nos:voprec:2014-09-7
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:finsta:v:33:y:2017:i:c:p:81-95 is not listed on IDEAS
    2. Irina Andrievskaya & Mikhail Raschupkin, 2015. "Is it Worth Being Transparent? Evidence from the Russian Banking System," HSE Working papers WP BRP 51/FE/2015, National Research University Higher School of Economics.
    3. repec:eee:jebusi:v:96:y:2018:i:c:p:15-41 is not listed on IDEAS
    4. repec:bla:ecnote:v:46:y:2017:i:3:p:649-676 is not listed on IDEAS
    5. repec:rfe:zbefri:v:36:y:2018:i:1:p:213-242 is not listed on IDEAS

    More about this item

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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