IDEAS home Printed from https://ideas.repec.org/a/rce/rvceco/yf4sd552.html

Market power and market structure: An analysis of Costa Rican banking since 2008

Author

Listed:
  • Cantillo Simón, Miguel

    (Universidad de Costa Rica, Escuela de Economía)

  • Pastrana, Guillermo

    (Universidad de Costa Rica, Escuela de Economía)

  • Cascante, José

Abstract

This paper analyzes the evolution of the Lerner index for Costa Rican banks between 2008 and 2019. We document a significant drop in market power during this period, which we relate to less concentration in loans and deposits. The market became less consolidated as a fringe of 29 small banks gained market share at the expense of large and medium banks. We find that for individual banks, a greater market share of loans, and greater loan specialization are related to higher profitability, while a greater market share of deposits and greater size are related to lower profit margins.

Suggested Citation

  • Cantillo Simón, Miguel & Pastrana, Guillermo & Cascante, José, 2026. "Market power and market structure: An analysis of Costa Rican banking since 2008," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 44(2).
    • Handle: RePEc:rce:rvceco:yf4sd552
    DOI: 10.15517/yf4sd552
    as

    Download full text from publisher

    File URL: https://doi.org/10.15517/yf4sd552
    Download Restriction: no
    File URL: https://revistas.ucr.ac.cr/index.php/reconomicas/article/download/13441/23892
    Download Restriction: no
    File URL: https://revistas.ucr.ac.cr/index.php/reconomicas/article/download/13441/23893
    Download Restriction: no
    File URL: https://libkey.io/10.15517/yf4sd552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rce:rvceco:yf4sd552. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Luis J. Hall (email available below). General contact details of provider: https://edirc.repec.org/data/iiucrcr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.