What Drives Bank Competition? Some International Evidence

Using bank-level data, the authors apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50 countries' banking systems. They then relate this...

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Main Authors:	Claessens, Stijn, Laeven, Luc
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	BANKING SYSTEMS INPUTS REVENUE SOURCES PRICE INDEXES COMPETITIVENESS FOREIGN BANKS PERFORMANCE INDICATORS BANKING REGULATIONS CONTESTABILITY ASSETS BANK HOLDING COMPANIES BANK LENDING BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKS CAPITAL MARKETS CAPITALIZATION COLLUSION COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE PRICE CONCENTRATION INDEXES CONSOLIDATION CONTESTABILITY CONTESTABLE MARKETS COOPERATIVE BANKS DEPOSITS DEREGULATION DEVELOPED COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC STABILITY ELASTICITIES ELASTICITY EMPIRICAL RESEARCH EMPIRICAL STUDIES EQUILIBRIUM EXPENDITURES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS GDP GDP PER CAPITA HOME MARKET IMPERFECT COMPETITION INEFFICIENCY INFLATION INFLATION RATE INPUT PRICES INSURANCE INSURANCE INDUSTRY INSURANCE PREMIUMS INTEREST EXPENSE INTEREST RATE INTEREST RATES MARGINAL COSTS MARGINAL REVENUE MARKET CONCENTRATION MARKET EQUILIBRIUM MARKET POWER MARKET STRUCTURE MONOPOLISTIC COMPETITION MONOPOLY NET INTEREST MARGIN OLIGOPOLY PER CAPITA INCOME PERFECT COMPETITION PRODUCTION FUNCTION PROFITABILITY PROPERTY RIGHTS REGULATORY REGIMES RETURN ON ASSETS SAVINGS SAVINGS BANKS SECURITIES SECURITIES MARKETS SMALL BANKS STOCK MARKETS SUPERVISORY AGENCIES TAXATION TECHNOLOGICAL PROGRESS TOTAL REVENUE TRANSITION ECONOMIES ASSETS
Online Access:	http://documents.worldbank.org/curated/en/2003/08/2494638/drives-bank-competition-some-international-evidence http://hdl.handle.net/10986/18121

id	okr-10986-18121
recordtype	oai_dc
spelling	okr-10986-181212021-04-23T14:03:41Z What Drives Bank Competition? Some International Evidence Claessens, Stijn Laeven, Luc BANKING SYSTEMS INPUTS REVENUE SOURCES PRICE INDEXES COMPETITIVENESS FOREIGN BANKS PERFORMANCE INDICATORS BANKING REGULATIONS CONTESTABILITY ASSETS BANK HOLDING COMPANIES BANK LENDING BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL MARKETS CAPITALIZATION COLLUSION COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE PRICE COMPETITIVENESS CONCENTRATION INDEXES CONSOLIDATION CONTESTABILITY CONTESTABLE MARKETS COOPERATIVE BANKS DEPOSITS DEREGULATION DEVELOPED COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC STABILITY ELASTICITIES ELASTICITY EMPIRICAL RESEARCH EMPIRICAL STUDIES EQUILIBRIUM EXPENDITURES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FOREIGN BANKS GDP GDP PER CAPITA HOME MARKET IMPERFECT COMPETITION INEFFICIENCY INFLATION INFLATION RATE INPUT PRICES INSURANCE INSURANCE INDUSTRY INSURANCE PREMIUMS INTEREST EXPENSE INTEREST RATE INTEREST RATES MARGINAL COSTS MARGINAL REVENUE MARKET CONCENTRATION MARKET EQUILIBRIUM MARKET POWER MARKET STRUCTURE MONOPOLISTIC COMPETITION MONOPOLY NET INTEREST MARGIN OLIGOPOLY PER CAPITA INCOME PERFECT COMPETITION PRODUCTION FUNCTION PROFITABILITY PROPERTY RIGHTS REGULATORY REGIMES RETURN ON ASSETS SAVINGS SAVINGS BANKS SECURITIES SECURITIES MARKETS SMALL BANKS STOCK MARKETS SUPERVISORY AGENCIES TAXATION TECHNOLOGICAL PROGRESS TOTAL REVENUE TRANSITION ECONOMIES ASSETS CONTESTABILITY Using bank-level data, the authors apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50 countries' banking systems. They then relate this competitiveness measure to indicators of countries' banking system structures and regulatory regimes. The authors find systems with greater foreign bank entry and fewer entry and activity restrictions to be more competitive. They find no evidence that the competitiveness measure negatively relates to banking system concentration. Their findings confirm that contestability determines effective competition, especially by allowing (foreign) bank entry and reducing activity restrictions on banks. 2014-04-30T19:39:37Z 2014-04-30T19:39:37Z 2003-08 http://documents.worldbank.org/curated/en/2003/08/2494638/drives-bank-competition-some-international-evidence http://hdl.handle.net/10986/18121 English en_US Policy Research Working Paper;No. 3113 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	BANKING SYSTEMS INPUTS REVENUE SOURCES PRICE INDEXES COMPETITIVENESS FOREIGN BANKS PERFORMANCE INDICATORS BANKING REGULATIONS CONTESTABILITY ASSETS BANK HOLDING COMPANIES BANK LENDING BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL MARKETS CAPITALIZATION COLLUSION COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE PRICE COMPETITIVENESS CONCENTRATION INDEXES CONSOLIDATION CONTESTABILITY CONTESTABLE MARKETS COOPERATIVE BANKS DEPOSITS DEREGULATION DEVELOPED COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC STABILITY ELASTICITIES ELASTICITY EMPIRICAL RESEARCH EMPIRICAL STUDIES EQUILIBRIUM EXPENDITURES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FOREIGN BANKS GDP GDP PER CAPITA HOME MARKET IMPERFECT COMPETITION INEFFICIENCY INFLATION INFLATION RATE INPUT PRICES INSURANCE INSURANCE INDUSTRY INSURANCE PREMIUMS INTEREST EXPENSE INTEREST RATE INTEREST RATES MARGINAL COSTS MARGINAL REVENUE MARKET CONCENTRATION MARKET EQUILIBRIUM MARKET POWER MARKET STRUCTURE MONOPOLISTIC COMPETITION MONOPOLY NET INTEREST MARGIN OLIGOPOLY PER CAPITA INCOME PERFECT COMPETITION PRODUCTION FUNCTION PROFITABILITY PROPERTY RIGHTS REGULATORY REGIMES RETURN ON ASSETS SAVINGS SAVINGS BANKS SECURITIES SECURITIES MARKETS SMALL BANKS STOCK MARKETS SUPERVISORY AGENCIES TAXATION TECHNOLOGICAL PROGRESS TOTAL REVENUE TRANSITION ECONOMIES ASSETS CONTESTABILITY
spellingShingle	BANKING SYSTEMS INPUTS REVENUE SOURCES PRICE INDEXES COMPETITIVENESS FOREIGN BANKS PERFORMANCE INDICATORS BANKING REGULATIONS CONTESTABILITY ASSETS BANK HOLDING COMPANIES BANK LENDING BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BANKS CAPITAL MARKETS CAPITALIZATION COLLUSION COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE PRICE COMPETITIVENESS CONCENTRATION INDEXES CONSOLIDATION CONTESTABILITY CONTESTABLE MARKETS COOPERATIVE BANKS DEPOSITS DEREGULATION DEVELOPED COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC STABILITY ELASTICITIES ELASTICITY EMPIRICAL RESEARCH EMPIRICAL STUDIES EQUILIBRIUM EXPENDITURES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FOREIGN BANKS GDP GDP PER CAPITA HOME MARKET IMPERFECT COMPETITION INEFFICIENCY INFLATION INFLATION RATE INPUT PRICES INSURANCE INSURANCE INDUSTRY INSURANCE PREMIUMS INTEREST EXPENSE INTEREST RATE INTEREST RATES MARGINAL COSTS MARGINAL REVENUE MARKET CONCENTRATION MARKET EQUILIBRIUM MARKET POWER MARKET STRUCTURE MONOPOLISTIC COMPETITION MONOPOLY NET INTEREST MARGIN OLIGOPOLY PER CAPITA INCOME PERFECT COMPETITION PRODUCTION FUNCTION PROFITABILITY PROPERTY RIGHTS REGULATORY REGIMES RETURN ON ASSETS SAVINGS SAVINGS BANKS SECURITIES SECURITIES MARKETS SMALL BANKS STOCK MARKETS SUPERVISORY AGENCIES TAXATION TECHNOLOGICAL PROGRESS TOTAL REVENUE TRANSITION ECONOMIES ASSETS CONTESTABILITY Claessens, Stijn Laeven, Luc What Drives Bank Competition? Some International Evidence
relation	Policy Research Working Paper;No. 3113
description	Using bank-level data, the authors apply the Panzar and Rosse (1987) methodology to estimate the extent to which changes in input prices are reflected in revenues earned by specific banks in 50 countries' banking systems. They then relate this competitiveness measure to indicators of countries' banking system structures and regulatory regimes. The authors find systems with greater foreign bank entry and fewer entry and activity restrictions to be more competitive. They find no evidence that the competitiveness measure negatively relates to banking system concentration. Their findings confirm that contestability determines effective competition, especially by allowing (foreign) bank entry and reducing activity restrictions on banks.
format	Publications & Research :: Policy Research Working Paper
author	Claessens, Stijn Laeven, Luc
author_facet	Claessens, Stijn Laeven, Luc
author_sort	Claessens, Stijn
title	What Drives Bank Competition? Some International Evidence
title_short	What Drives Bank Competition? Some International Evidence
title_full	What Drives Bank Competition? Some International Evidence
title_fullStr	What Drives Bank Competition? Some International Evidence
title_full_unstemmed	What Drives Bank Competition? Some International Evidence
title_sort	what drives bank competition? some international evidence
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/08/2494638/drives-bank-competition-some-international-evidence http://hdl.handle.net/10986/18121
_version_	1764438907191033856

What Drives Bank Competition? Some International Evidence

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