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Bank Office Outreach, Structure and Performance in Regional Banking Markets

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  • Johann Burgstaller

Abstract

Burgstaller J. Bank office outreach, structure and performance in regional banking markets, Regional Studies . This paper studies bank penetration, market structure and banking conduct across Austrian districts. Neither differences in market concentration nor in the activity of out-of-market banks can explain the regional dispersion of interest rates, bank profitability and efficiency. A higher bank density is connected to more competition and lower mark-ups, and indicates more efficient banking markets as well. As efficiency is the main determinant of bank profits and competition seems to be (mildly) indicative of stronger regional growth, the preservation of a fair regional bank outreach appears to be an important policy target.

Suggested Citation

  • Johann Burgstaller, 2013. "Bank Office Outreach, Structure and Performance in Regional Banking Markets," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1131-1155, July.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:7:p:1131-1155
    DOI: 10.1080/00343404.2011.607809
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    References listed on IDEAS

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    1. J.A. Bikker & L. Spierdijk & P. Finnie, 2007. "The Impact of Market Structure, Contestability and Institutional Environment on Banking Competition," Working Papers 07-29, Utrecht School of Economics.
    2. Dean F. Amel & Arthur B. Kennickell & Kevin B. Moore, 2008. "Banking market definition: evidence from the Survey of Consumer Finances," Finance and Economics Discussion Series 2008-35, Board of Governors of the Federal Reserve System (U.S.).
    3. Krahnen, Jan P. & Schmidt, Reinhard H. (ed.), 2004. "The German Financial System," OUP Catalogue, Oxford University Press, number 9780199253166.
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    2. Cowling, Marc & Ughetto, Elisa & Lee, Neil, 2018. "The innovation debt penalty: Cost of debt, loan default, and the effects of a public loan guarantee on high-tech firms," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 166-176.
    3. Coccorese, Paolo & Girardone, Claudia & Shaffer, Sherrill, 2021. "What affects bank market power in the euro area? A country-level structural model approach," Journal of International Money and Finance, Elsevier, vol. 117(C).
    4. Ron Boschma & Emanuela Marrocu & Raffaele Paci, 2016. "Symmetric and asymmetric effects of proximities. The case of M&A deals in Italy," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 505-535.
    5. José Manuel Pastor & Jose M. Pavía & Lorenzo Serrano & Emili Tortosa-Ausina, 2017. "Rich regions, poor regions and bank branch deregulation in Spain," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1678-1694, November.
    6. Laura Barbieri & Mariarosa Borroni & Andrea Lippi & Mariacristina Piva & Simone Rossi, 2021. "Determinants of Bank Branch Presence in Local Areas: A Comparison Between North and South of Italy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(9), pages 1-15, August.
    7. Jaksa Kristo & Iva Mandac, 2015. "Characteristics of bank financial intermediation in Croatian counties," Financial Theory and Practice, Institute of Public Finance, vol. 39(1), pages 57-82.
    8. Andrea Cayumil Fernández & Miguel Quiroga & Iván Araya & Gabriel Pino, 2022. "Can local financial depth and dependence on external funding impact regional creation of new firms in Chile?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(2), pages 387-406, April.
    9. Jakša Krišto & Iva Mandac, 2015. "Characteristics of bank financial intermediation in Croatian counties," EFZG Working Papers Series 1502, Faculty of Economics and Business, University of Zagreb.
    10. Marcello Pagnini & Paola Rossi & Valerio Vacca & Johann Burgstaller, 2017. "Dynamics of Retail-Bank Branching in Austria," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(3), pages 527-554, November.

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