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Competition in commercial banks in Poland – analysis of Panzar-Rosse H-statistics

Author

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  • Filip Switala

    (University of Warsaw, Faculty of Management)

  • Malgorzata Olszak

    (University of Warsaw, Faculty of Management)

  • Iwona Kowalska

    (University of Warsaw, Faculty of Management)

Abstract

This paper aims to find out how intense is the competition in Polish commercial banks loan market. Using Panzar – Rosse H-statistics and applying several estimation techniques (GLS, one-step GMM and two-step GMM) we find that this intensity is sensitive to the estimator applied. Upon analysis of results, one can conclude that competition evolves differently across years in Poland. In some years, competition was relatively high, as the H-statistics reached the level of 0.75, which is relatively close to perfect competition. In other years it gradually decreased reaching its bottom line in 2010, and took upward trend in 2011 and 2012. Generally, the values of our competitive environment measure indicate at monopolistic competition in Poland.

Suggested Citation

  • Filip Switala & Malgorzata Olszak & Iwona Kowalska, 2013. "Competition in commercial banks in Poland – analysis of Panzar-Rosse H-statistics," Faculty of Management Working Paper Series 42013, University of Warsaw, Faculty of Management.
    • Handle: RePEc:sgm:fmuwwp:42013
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    References listed on IDEAS

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    Cited by:

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    2. Mohammad ALAWIN, 2024. "The Degree Of Competitiveness Of Islamic Banks Compared To Commercial Banks In Kuwait," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 24(1), pages 121-136.
    3. Mustafa Ildırar & İbrahim Başaran, 2021. "The Effect of the Global Financial Crisis on the Market Structure: The Case of the Turkish Banking Sector," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 6(2), pages 289-303.

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    More about this item

    Keywords

    competition intensity; marginal costs; contestabily; banking industry;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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