Market Power in the Czech Banking Sector

Řepková, Iveta

doi:10.7441/joc.2012.01.11

Cited by 14 publications

(10 citation statements)

References 7 publications

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“…The Lerner index better reflects monopoly power. For example, Repkova (2012) estimated the market power in the Czech banking industry between 2000 and 2010. He found that HHI showed a trend of modest decrease, indicating that market concentration changed appreciably over the sample period.…”

Section: Data and Research Modelmentioning

confidence: 99%

The influence of market power on liquidity creation of commercial banks in Vietnam

Nguyen

Phan

Wong

et al. 2022

JABES

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PurposeThis research examines the relationship between market power and liquidity creation in the specific context of bank profitability in the Vietnamese banking sector.Design/methodology/approachThe study applies the methodology proposed by Berger and Bouwman (2009) to demonstrate the creation of bank liquidity through a three-step procedure for investigating the relationship between market power and liquidity creation. The three steps include non-fat liquidity (NFLC), fat liquidity (FLC) and system generalized method of moments estimation for panel data.FindingsThis study finds that liquidity creation increases when a bank has high market power. Further, highly profitable banks positively impact the market power of banks with regard to liquidity creation, relative to less profitable banks. Moreover, bank size, capital, economic growth and interest rate negatively influence bank liquidity creation, while credit risk positively relates to bank liquidity creation.Research limitations/implicationsMeasurements used in this study are based on the works of Berger and Bouwman (2009). There are specific variations, relative to Basel III. In addition, other variables significantly impact bank liquidity creation that have not been considered in the models, and a quadratic model should have been considered to measure market power and bank liquidity creation.Practical implicationsThis study suggests that managers should control the liquidity of their banks by supervising vulnerable characteristics that have been mentioned herein and emphasizing improvements in profitability. Further, the government may consider encouraging banks to generate more liquidity by modifying regulations concerned with market power or reinforcing policies about improving the transparent business environment.Originality/valueThis study characterizes an attempt to examine the influence of market power on the liquidity creation of banks in Vietnam, which represents one of the most dynamic systems in Asia, with several varied participating banks. The current study also examines the same within the specific context of the modifying impact of the profitability of banks.

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Section: Data and Research Modelmentioning

confidence: 99%

The influence of market power on liquidity creation of commercial banks in Vietnam

Nguyen

Phan

Wong

et al. 2022

JABES

View full text Add to dashboard Cite

show abstract

“…Not only that the Lerner index can measure the market power of individual firms or specific products, but it can also measure the market power of the whole industry or market. As a result, it is considered as the only available measure of competition at the bank level (Berger, Klapper, & Turk-Ariss, 2009;Coccorese, 2009;Repkova, 2012).…”

Section: Data Descriptionsmentioning

confidence: 99%

Bank Concentration and Economic Growth Nexus

Smolo¹

2020

AFL

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This paper examines the relationship between bank concentration and economic growth in Organization of Islamic Cooperation (OIC) countries. This is done using the system GMM estimators on a panel data sample consisting of 41 countries and 650 observations. Our analysis reveals that bank concentration has negative impact on economic growth and this relationship is non-linear. Furthermore, the impact of bank concentration on economic growth is found to be dependent on the country’s income and corruption levels. Therefore, it seems reasonable to conclude that bank concentration has negative impact on the economic growth in OIC countries.

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“…Overall, the level of competition of the European banks increased over the past decade. Repkova (2012) studied the competitiveness of the Czech banking system during the 2000-2010 period. In order to measure the level of competition, the author used the Lerner index, HHI index, and the CR index.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors Affecting the Level of Bank Competition: Empirical Evidence in Vietnamese Commercial Banks

Hoang¹,

Le²

2019

IJEBA

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Purpose: There is increasing interest in the trends and requirements associated with improvement in the competition of commercial banks. Many studies have been conducted on this topic in Vietnam as well as in the rest of the world. In the present study, the factors affecting the level of competition in the banking system in Vietnam have been studied. Design/Methodology/Approach: We employ the Bayesian Multilevel Generalized Linear Model to identify the factors affecting the level of competition in the banking system in Vietnam. Findings: The findings show that the eight variables that affect the level of competition in Vietnam commercial banks were identified, including previous-year competition, equity on total assets ratio, loans on total assets ratio, operating expense on the operating income ratio, return on equity, bank size, economic growth, and inflation rate. Moreover, the results demonstrated that during the 2008-2009 crisis, there was a positive relationship between the crisis and the Lerner index. Practical Implications: Based on the research results, we provide policy implications to improve the competitive status of commercial banks in Vietnam. Originality/Value: The results of the present study would serve as a basis for assisting the policy-makers and the other stakeholders to better understand the current state of bank competition and the factors affecting the level of bank competition, which would assist them in formulating strategies and solutions to improve bank competition in Vietnam.

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Market Power in the Czech Banking Sector

Cited by 14 publications

References 7 publications

The influence of market power on liquidity creation of commercial banks in Vietnam

The influence of market power on liquidity creation of commercial banks in Vietnam

Bank Concentration and Economic Growth Nexus

Factors Affecting the Level of Bank Competition: Empirical Evidence in Vietnamese Commercial Banks

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