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Empirical analysis of Russian commercial banks growth dynamics

Author

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  • Kontsevoy, Denis

    () (Sberbank, Moscow)

Abstract

In this study an empirical model of Russian commercial banks growth is proposed. Dynamic panel regression with fixed individual effects is estimated by System GMM estimator for given quarterly data of 2008–2011. The main purpose is to test whether Gibrat’s Law of Proportionate Effect (LPE) is hold for Russian commercial banking industry and to determine key factors of banks growth. No evidence of LPE and growth persistence was found. Bank growth is negatively dependent on the size and positively dependent on market concentration. The results of this paper allow forecasting either the future structure of Russian banking sector or particular banks position using open data.

Suggested Citation

  • Kontsevoy, Denis, 2013. "Empirical analysis of Russian commercial banks growth dynamics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 29(1), pages 67-81.
  • Handle: RePEc:ris:apltrx:0203
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    References listed on IDEAS

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    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
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    7. Ana Sofia Domingues Rodrigues & Christopher A. Laincz, 2004. "Understanding the Variations in Gibrat's Law with a Markov-Perfect Dynamic Industry Model," Computing in Economics and Finance 2004 173, Society for Computational Economics.
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    More about this item

    Keywords

    law of proportionate effect; persistence of profit; Russian banking; bank growth;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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