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The Degree of Competition in the Thai Banking Industry before and after the East Asian Crisis

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  • Kubo, Koji

Abstract

This paper analyzes the influence of the East Asian crisis and the subsequent reforms on the oligopolistic nature of the Thai banking industry. Since the crisis, there have been substantial changes in competitive environment, including a decline in the family ownership of banks as well as the arrival of new entrants. How did these changes affect a banking industry in which the six largest local banks accounted for over 70 percent of market share? The estimated Lerner index from Bresnahan's [1989] conjectural variation model indicates the possibility of a decline in the degree of competition.

Suggested Citation

  • Kubo, Koji, 2006. "The Degree of Competition in the Thai Banking Industry before and after the East Asian Crisis," IDE Discussion Papers 56, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper56
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=38110&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2006
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Pariyada Sukcharoensin, 2013. "Time-Varying Market, Interest Rate and Exchange Rate Risks of Thai Commercial Banks," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 9(1), pages 25-45.
    2. Mahathanaseth, Itthipong & Tauer, Loren W., 2012. "Market-power versus cost-efficiency in Thailand's banking sector in the post-crisis period (1998–2011)," Journal of Asian Economics, Elsevier, vol. 23(5), pages 499-506.
    3. Rezitis, Anthony N., 2010. "Evaluating the state of competition of the Greek banking industry," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 20(1), pages 68-90, February.
    4. Simpasa, Anthony, 2010. "Characterising market power and its determinants in the Zambian banking indudstry," MPRA Paper 27232, University Library of Munich, Germany.

    More about this item

    Keywords

    Thai banking industry; Degree of competition; Lerner index; Banks; Financial crises; Thailand; 銀行; 金融危機; タイ;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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