Competition in bank-provided payment services
Banks supply payment services that underpin the smooth operation of the economy. To ensure an efficient payment system, it is important to maintain competition among payment service providers but data available to gauge the degree of competition are quite limited. We propose and implement a frontierbased method to assess relative competition in bank-provided payment services. Billion dollar banks account for around ninety percent of assets in the US and those with around to billion in assets turn out to be both the most and the least competitive in payment services, not the very largest banks. JEL Classification: G21 L80 L00
|Date of creation:||Apr 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Santiago Carbó Valverde & David Humphrey & Rafael López del Paso, 2007. "Opening the black box: Finding the source of cost inefficiency," Journal of Productivity Analysis, Springer, vol. 27(3), pages 209-220, June.
- Hasan, Iftekhar & Schmiedel, Heiko & Song, Liang, 2009.
"Return to retail banking and payments,"
Working Paper Series
1135, European Central Bank.
- Ho, Katherine & Ishii, Joy, 2011. "Location and competition in retail banking," International Journal of Industrial Organization, Elsevier, vol. 29(5), pages 537-546, September.
- Bolt, Wilko & Humphrey, David, 2010.
"Bank competition efficiency in Europe: A frontier approach,"
Journal of Banking & Finance,
Elsevier, vol. 34(8), pages 1808-1817, August.
- Wilko Bolt & David Humphrey, 2008. "Bank Competition Efficiency in Europe: A Frontier Approach," DNB Working Papers 194, Netherlands Central Bank, Research Department.
- Jan Boone, 2008.
"A New Way to Measure Competition,"
Royal Economic Society, vol. 118(531), pages 1245-1261, 08.
- Boone, Jan, 2004. "A New Way to Measure Competition," CEPR Discussion Papers 4330, C.E.P.R. Discussion Papers.
- Boone, J., 2004. "A New Way to Measure Competition," Discussion Paper 2004-004, Tilburg University, Tilburg Law and Economic Center.
- Boone, J., 2004. "A New Way to Measure Competition," Discussion Paper 2004-31, Tilburg University, Center for Economic Research.
- Altunbas, Yener & Marqués-Ibáñez, David & Manganelli, Simone, 2011.
"Bank risk during the financial crisis: do business models matter?,"
Working Paper Series
1394, European Central Bank.
- Yener Altunbas & Simone Manganelli & David Marques-Ibanez, 2012. "Bank Risk during the Financial Crisis: Do business models matter?," Working Papers 12003, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
- Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
- Lawrence J. Radecki & John Wenninger & Daniel K. Orlow, 1996. "Bank branches in supermarkets," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 2(Dec).
- Berger, Allen N. & Humphrey, David B., 1997.
"Efficiency of financial institutions: International survey and directions for future research,"
European Journal of Operational Research,
Elsevier, vol. 98(2), pages 175-212, April.
- Allen N. Berger & David B. Humphrey, 1997. "Efficiency of Financial Institutions: International Survey and Directions for Future Research," Center for Financial Institutions Working Papers 97-05, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Allen N. Berger & David B. Humphrey, 1997. "Efficiency of financial institutions: international survey and directions for future research," Finance and Economics Discussion Series 1997-11, Board of Governors of the Federal Reserve System (U.S.).
- Wilko Bolt & Heiko Schmiedel, 2013. "Pricing of payment cards, competition, and efficiency: a possible guide for SEPA," Annals of Finance, Springer, vol. 9(1), pages 5-25, February.
- DeYoung, Robert, 1997. "A diagnostic test for the distribution-free efficiency estimator: An example using U.S. commercial bank data," European Journal of Operational Research, Elsevier, vol. 98(2), pages 243-249, April.
- Jan Boone, 2008. "Competition: Theoretical Parameterizations and Empirical Measures," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(4), pages 587-611, December.
When requesting a correction, please mention this item's handle: RePEc:ecb:ecbwps:20131539. 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: (Official Publications)
If references are entirely missing, you can add them using this form.