- Copyright Page
- List of Figures
- List of Tables
- List of Abbreviations
- List of Contributors
- Banking: A Decade on from the Global Financial Crisis
- The Roles of Banks in Financial Systems
- Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation
- Corporate Complexity and Systemic Risk: A Progress Report
- Corporate Governance and Culture in Banking
- Private Information and Risk Management in Banking
- Creation and Regulation of Bank Liquidity
- The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications
- Technological Change and Financial Innovation in Banking: Some Implications for FinTech
- Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions
- Islamic banking: A Review of the Empirical Literature and Future Research Directions
- Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success
- Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery
- Residential Mortgages
- Shadow Banking
- Modern Central Banking
- Lender of Last Resort: A New Role for the Old Instrument
- Bank Bailouts and Bail-Ins
- Bank Runs and Moral Hazard: A Review of Deposit Insurance
- Bank Capital Requirements after the Financial Crisis
- Market Discipline in Regulation: Pre and Post Crisis
- Competition in the Banking Sector
- Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions
- Systemic Risk in Banking after the Great Financial Crisis
- Hardy Perennials: Banking Crises Around the World
- Bank Failures, The Great Depression, and Other “Contagious” Events
- Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk
- Banking and Real Economic Activity: Foregone Conclusions and Open Challenges
- Banking in the United States
- Banking in Europe: Integration, Reform, and the Road to a Banking Union
- Banking in Japan: A Post-global Financial Crisis Perspective
- Banking in Africa
- Banking in China
- Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union
- Banking in Latin America: Developments and Prospects
- Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration
Abstract and Keywords
This chapter merges recent findings from the empirical banking literature with conventional insights from work on banking competition and regulation. It first reviews and assesses the different methodological approaches pursued to address banking competition. While market structure indicators are easily computable, they may not be overly informative about the competitive conditions in banking markets. The literature now focuses on “non-market structure” indicators such as the Panzar-Rosse H-statistic, the (adjusted) Lerner index, or the Boone indicator. The chapter then structures the discussion on the empirical findings based upon a framework that finds its roots in the different theories of financial intermediation. Other approaches to infer banking competition are also discussed, in particular, the impact that regulation and information sharing between banks may have on banking competition.
Hans Degryse is Professor of Finance at the Department of Accountancy, Finance and Insurance of the KU Leuven. He is a research fellow at the CEPR, CESIfo, the European Banking Center (EBC), and TILEC. He is a member of the Group of Economic Advisers of ESMA. Before joining Leuven in 2012, he was Professor of Finance at Tilburg University. His research focuses on financial intermediation, including theoretical and empirical banking as well as market microstructure. He has published in many journals including the American Economic Review, Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Management Science, Review of Finance, Journal of Financial Intermediation, and the Economic Journal, and has been presented in leading international conferences such as the American Finance Association, the Western Finance Association, the European Finance Association, and the Financial Intermediation Research Society. He co-authored, with Moshe Kim and Steven Ongena, the graduate textbook Microeconometrics of Banking: Methods, Applications and Results (Oxford University Press, 2009).
Paola Morales-Acevedo is a Researcher at the Central Bank of Colombia, Banco de la República. Prior to that, she was an Economist at the Applied Research and Modelling Division of the Sveriges Riksbank. Her research focuses on empirical banking, financial intermediation, monetary policy, behavioral finance and corporate finance. She holds a Ph.D in Finance from the CentER graduate school of Tilburg University (Netherlands). During her Ph.D studies, she has been a Visiting Scholar at the Department of Banking and Finance of the University of Zurich, as well as an intern at the Research Department of the Sveriges Riksbank and at the Monetary Capital Markets Department (Financial Crisis) of the International Monetary Fund. She has also been a Junior Fellow of the European Banking Center. Paola received a M. Phil. in Finance from Tilburg University in 2011, an M.Sc. in Industrial Engineering in 2009, a B.A. in Economics in 2009 and a B.Sc. in Industrial Engineering in 2007 from Universidad de los Andes (Colombia). After finishing her first bachelor degree, she worked for three years at the Financial Stability Department of the Central Bank of Colombia.
Steven Ongena is a Professor of Banking at the University of Zurich, a senior chair at the Swiss Finance Institute, a research Professor at KU Leuven, and a research fellow in financial economics of CEPR. He is also a research Professor at Deutsche Bundesbank. He has published more than sixty-five papers in refereed journals, including in the American Economic Review, Econometrica, Journal of Finance, Journal of Financial Economics, Journal of International Economics, Journal of Political Economy, Management Science, and Review of Finance. In 2017, he received an ERC Advanced Grant and in 2012 a NYU-Fordham-RPI Rising Star in Finance Award.
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