Bank’s Competition
Keywords:
banking, competition, Panzar Rose model, market structureAbstract
Bank’s competition is one argument among others behind the financial instability especially in the economy which bank is the main financial intermediation. In order to meet this stability goal, regulator tends to use this argument to allow for concentrated and monopolizing rather than competed structure in banking industry. Therefore, to measure the competition in financial industry is the crucial supervision policy issue. The main objective here is to study the status of bank’s competition after the recently establishment of the new financial master plan in Thailand, which tried to separate commercial banks into various types of banks. Since the relationship between competition, efficiency and stability in financial system are not easy to consider separately, this study has used the non-structural approach to measure the competition status. The results showed that, in period of study, bank’s competition did not show up as high as the structural approach often indicate.
References
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2.Beck, T.(2008), “Bank Competition and Financial Stability: Friends or Foes?”, Working Paper No.4656, The World Bank, Washington D.C.
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8.Bresnahan, T.F. (1982), “The Oligopoly Solution Concept is Identified”, Economic Letter, 10, 87-92.
9.Chan, D., C. Schumacher, and D. Tripe (2007), “Bank Competition in New Zealand and Australia”, Paper in 12th Finsia-Melbourne Centre for Financial Studies Banking and Finance Conference, Melbourne, 24-25 September 2007
10.Claussens, S. and L. Leaven (2004), “What Drives Bank Competition? Some International Evidence”, Journal of Money, Credit and Banking, 36, 563-583
11.De Barant, O. and E.P. Davis (2000), “Competition Contestability and Market Structure in European Banking Sectors on the Eve of EMU’, Journal of Baking and Finance, 24, 1045-1066
12.Gelos, R.G. and J. Roldos (2002), “Consolidation and Market Structure in Emerging Markets Banking Systems”, Working Paper No. 186, International Monetary Fund, Washington D.C.
13.Iwata, G. (1974), “Measurement of Conjectural Variations in Oligopoly”, Econometrica, 42, 947-966.
14.Keeley, M. (1990), “Deposit Insurance, Risk and Market Power in Banking”, American Economic Review, 80, 1183-1200
15.Lau, L.(1982) “On Identifying the Degree of Competiveness from Industry Price and Output Data” Economic Letter, 10, 93-99.
16.Lloyd-Williams, D.M., P. Molyneux, and J. Thornton (1991), “Competition and Contestablity in the Japanese Commercial Banking Market”, Research Papers in Banking and Finance No. 16, Institute of European Finance, Bangor
17.Molyneux, P., D.M. Lloyd-Williams and J. Thornton (1994), “Competitive Conditions in European Banking”, Journal of Banking and Finance, 18, 445-459
18.Murjan, W. and C. Ruza (2002), “The Competitive Nature of the Arab Middle Eastern Banking Markets”, International Advances in Economics, 267-275
19.Nathan, K. and E.H. Neave (1989), “Competition and Contestability in Canada’s Financial System: Empirical Results”, Canadian Journal of Economics, 3, 556-574
20.Niimi, K. (1998), “Big bang to Waga Kuni Ginkogyo: Jiyuka to Rireshonshippu Redingu”, Japan Research Review (in Japanese)
21.Panzar, J.C. and J.N.Rose (1987), “Testing for ‘Monopoly’ Equilibrium”, Journal of Industrial Economics, 35, 443-456
22.Shaffer, S. and J. Disalvo (1994), “Conduct in a Banking Duopoly”, Journal of Banking and Finance, 18, 1063-1082
23.Schaeck, K. and M. Cihak (2007), “Banking Competition and Capital Ratios”, Working Paper No. 216, International Monetary Fund, Washington D.C.
24.Vesala, J. (1995), “Testing for Competition in Banking: Behavioural Evidence from Finland”, Bank of Finland Studies
25.Yuan, Y. (2006), “The State of Competition of the Chinese Banking Industry”, Journal of Asian Economics, 17, 519-534
2.Beck, T.(2008), “Bank Competition and Financial Stability: Friends or Foes?”, Working Paper No.4656, The World Bank, Washington D.C.
3.Bectas, E. (2008), “Competition Conditions in Pre and Post Regulation (Banking Crisis) Era: The Case of North Cyprus”, Proceedings, EABR and TLC Conferences, Salzburg, Austria
4.Berger, A., L. Klapper and R. Turk-Ariss (2008), “Bank Competition and Financial Stability”, Working Paper No.4696, The World Bank, Washington D.C.
5.Bikker, J.A. and K. Haaf (2000), “Measures of Competition and Concentration in the Banking Industry: A Review of Literature”, Research Series Supervision No.27, De Nederlandsche Bank
6.Bikker, J.A. and K. Haaf (2002), “Competition, Concentration and Their Relationship: An Empirical Analysis of Banking Industry”, Journal of Banking and Finance, 26, 2191-2214
7.Bikker, J.A. and J.M.Groeneveld (2000), “Competition and Concentration in the EU Banking Industry”, Kredit and Kapital, 33, 62-98
8.Bresnahan, T.F. (1982), “The Oligopoly Solution Concept is Identified”, Economic Letter, 10, 87-92.
9.Chan, D., C. Schumacher, and D. Tripe (2007), “Bank Competition in New Zealand and Australia”, Paper in 12th Finsia-Melbourne Centre for Financial Studies Banking and Finance Conference, Melbourne, 24-25 September 2007
10.Claussens, S. and L. Leaven (2004), “What Drives Bank Competition? Some International Evidence”, Journal of Money, Credit and Banking, 36, 563-583
11.De Barant, O. and E.P. Davis (2000), “Competition Contestability and Market Structure in European Banking Sectors on the Eve of EMU’, Journal of Baking and Finance, 24, 1045-1066
12.Gelos, R.G. and J. Roldos (2002), “Consolidation and Market Structure in Emerging Markets Banking Systems”, Working Paper No. 186, International Monetary Fund, Washington D.C.
13.Iwata, G. (1974), “Measurement of Conjectural Variations in Oligopoly”, Econometrica, 42, 947-966.
14.Keeley, M. (1990), “Deposit Insurance, Risk and Market Power in Banking”, American Economic Review, 80, 1183-1200
15.Lau, L.(1982) “On Identifying the Degree of Competiveness from Industry Price and Output Data” Economic Letter, 10, 93-99.
16.Lloyd-Williams, D.M., P. Molyneux, and J. Thornton (1991), “Competition and Contestablity in the Japanese Commercial Banking Market”, Research Papers in Banking and Finance No. 16, Institute of European Finance, Bangor
17.Molyneux, P., D.M. Lloyd-Williams and J. Thornton (1994), “Competitive Conditions in European Banking”, Journal of Banking and Finance, 18, 445-459
18.Murjan, W. and C. Ruza (2002), “The Competitive Nature of the Arab Middle Eastern Banking Markets”, International Advances in Economics, 267-275
19.Nathan, K. and E.H. Neave (1989), “Competition and Contestability in Canada’s Financial System: Empirical Results”, Canadian Journal of Economics, 3, 556-574
20.Niimi, K. (1998), “Big bang to Waga Kuni Ginkogyo: Jiyuka to Rireshonshippu Redingu”, Japan Research Review (in Japanese)
21.Panzar, J.C. and J.N.Rose (1987), “Testing for ‘Monopoly’ Equilibrium”, Journal of Industrial Economics, 35, 443-456
22.Shaffer, S. and J. Disalvo (1994), “Conduct in a Banking Duopoly”, Journal of Banking and Finance, 18, 1063-1082
23.Schaeck, K. and M. Cihak (2007), “Banking Competition and Capital Ratios”, Working Paper No. 216, International Monetary Fund, Washington D.C.
24.Vesala, J. (1995), “Testing for Competition in Banking: Behavioural Evidence from Finland”, Bank of Finland Studies
25.Yuan, Y. (2006), “The State of Competition of the Chinese Banking Industry”, Journal of Asian Economics, 17, 519-534
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Published
2012-09-21
How to Cite
Leenabanchong, C. (2012). Bank’s Competition. Thailand and The World Economy, 30(3), 102–131. Retrieved from https://so05.tci-thaijo.org/index.php/TER/article/view/136711
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