IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/2045.html
   My bibliography  Save this paper

Bank Competition and Enterprise restructuring in Transition Economies

Author

Listed:
  • Schnitzer, Monika

Abstract

We investigate how bank competition affects the efficiency of credit allocation, using a model of spatial competition. Our analysis shows that bad loans are more likely the larger the number of banks competing for customers. We study further how many banks will be active if market entry is not regulated. Free entry can induce too much entry and thus too many bad loans compared to the social optimum. Finally, we analyse how bank competition affects the firms' restructuring effort. We find that restructuring has positive externalities that give rise to multiple equilibria, with either much or little restructuring activity.

Suggested Citation

  • Schnitzer, Monika, 1998. "Bank Competition and Enterprise restructuring in Transition Economies," CEPR Discussion Papers 2045, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:2045
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2045
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hainz, Christa, 2007. "The Effect of Bank Competition on the Bank's Incentive to Collateralize," Discussion Papers in Economics 2007, University of Munich, Department of Economics.
    2. Ulrike Hotopp & Slavo Radosevic & Kate Bishop, 2005. "Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-Based Learning," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 41(4), pages 20-37, August.
    3. Ulrike Hotopp & Slavo Radosevic & Kate Bishop, 2005. "Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-Based Learning," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 41(4), pages 20-37, August.
    4. Hermann Clement & Alexandra Reppegather, 2002. "Effektivität der Förderbankkredite für KMU in Mittel- und Osteuropa. (Unter besonderer Berücksichtigung der Situation in Ungarn und Ukraine)," Working Papers 239, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    5. Bogdan Capraru, 2010. "The Romanian Banking Competition And The Accession To Eu," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 399-404, July.
    6. Christa Hainz, 2004. "Are Transition Countries Overbanked? The Effect of Institutions on Bank Market Entry," German Economic Review, Verein für Socialpolitik, vol. 5(2), pages 237-256, May.

    More about this item

    Keywords

    Bank Competition; market entry; Restructuring; screening; Transition Economies;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P34 - Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

    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:cpr:ceprdp:2045. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.