Relationship between competition and efficiency in the Czech banking industry

Řepková, Iveta; Stavárek, Daniel

doi:10.11118/actaun201361072701

Cited by 4 publications

(3 citation statements)

References 26 publications

(17 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Hicks (1935, p. 8) "quiet life" hypothesis (QLH), which posits that as banks amass market power when industry concentration increases, managers can raise price and would exhibit no motivations to curtail costs (Lelissa & Kuhil, 2017;Berger & Hannan, 1998). The finding that QLH holds in the industry is consistent with Gavurova, Kocisova, and Kotaskova (2017) view of EU banking, Repkova and Stavarek (2013) outlook of the Czech banking industry, and Berger and Hannan (1998) assessment of the US banking industry. However, it contradicts Mensi & Zouari (2010) and Casu and Giradone (2009) findings that show no support for QLH.…”

Section: Resultsmentioning

confidence: 81%

Canadian Banking Industry Profitability: Exploring the Relevance of Two Competing Hypotheses

Oredegbe¹

2020

IJEF

View full text Add to dashboard Cite

This study investigates the Canadian banking industry profitability and seeks to determine if there is evidence of market power hypothesis (MPH) and/or efficiency structure hypothesis (ESH) in the industry. Using GMM and data from 2006 to 2018, it finds no support for the structure-conduct-performance (SCP) component of MPH. However, evidence of relative market power (RMP) in the industry reflects partial support for MPH, implying that banks that offer differentiated products are able to exercise market power, increase market share, and achieve better profitability. The lack of support for X-efficiency (ESX) and scale efficiency (ESS), which are components of ESH, indicates no support for the ESH. The finding that QLH holds in the industry suggests the level of competition is inadequate and that managers in the industry exhibit suboptimal behaviour. Therefore, increasing the level of competition in the industry will stimulate managerial effectiveness. Findings relating to the control variables show that spread impedes profitability, whereas capitalization and the joint influence of spread and liquidity risk have facilitating effects. Credit risk is immaterial to profitability however, the effect of economic growth can be positive. This study provides a better understanding of the industry, which is important to managers, regulators, and policy makers. The robustness checks affirm the consistency of the findings and policy implications.

show abstract

Section: Resultsmentioning

confidence: 81%

Canadian Banking Industry Profitability: Exploring the Relevance of Two Competing Hypotheses

Oredegbe¹

2020

IJEF

View full text Add to dashboard Cite

show abstract

“…The study of Repkova and Stavarek (2013) also aimed to estimate the relationship between competition and efficiency in the Czech banking industry in the period between 2001 and 2010. The Lerner index and Data Envelopment Analysis were used to estimate the degree of competition and efficiency in the Czech banking sector.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Banking Concentration on Investment and Economic Growth in Jordan

Al-Tanbour

Awad-Warrad²

2021

IJEFI

View full text Add to dashboard Cite

This paper aims to investigate the impact of banking concentration on investment and economic growth for the Jordanian economy. It utilizes annual sample for the period between 1980 and 2018. The study examines the effectiveness of the Structure-Conduct-Performance (SCP) hypothesis and the other Efficient-Structure (ES) hypothesis for the case of Jordan. The Augmented Dickey-Fuller (ADF) and cointegration tests are used and the results indicate to the appropriateness of the following econometric techniques: Autoregressive Distributed Lag Bound test (ARDL), the fully modified OLS (FMOLS) and generalized methods of moments (GMM). The estimation results indicated to negative relationship between concentration index and both investment spending and the rate of real economic growth. The study recommended that the Central Bank of Jordan should continue to allow new banks to enter the banking market to reduce the impact of concentration as much as possible to achieve competitive gains in the Jordanian banking sector.

show abstract

“…Banks are trying to solve the problem with debtors by publishing lists of their debts on their websites and a ban on leaving the country. Trying to improve the situation with overdue loans, banks offer their customers loan restructuring (Repkova and Stavarek, 2013). Often, banks offer some indulgence to borrowers who, on their own, try to find solutions to problems with repayment, "forgiving" them with fines and penalties (Cernohorska and Honza, 2014).…”

mentioning

confidence: 99%

Marketing and management of credit portfolio of a commercial bank: data of economic and statistical analysis of basic parameters of credit

Andros¹

2019

MMI

View full text Add to dashboard Cite

The article analyses the loan portfolio of the bank on the main parameters of the loan: amounts, terms, interest rates. The purpose of the article is to identify the specifics of bank marketing and to develop a methodical approach to the effective management of the credit portfolio of a commercial bank using economic and statistical analysis of the main parameters of the loan. Analysis of literary sources shows that not enough attention is paid to the integrated application of marketing methods and the formation of an optimal bank loan portfolio. The relevance of the article is the need to use the mathematical apparatus to optimize the lending process. This allows you to solve questions about raising the maximum loan amounts, reducing interest rates, ensuring the timeliness of loan repayment. The methods of marketing in the grocery analysis of the credit market are considered. Analysed consumer behaviour in the market of credit products. Formulated factors affecting the size of the interest payments of the bank. The impact of each category of borrowers on the overall increase in interest payments is determined. Analysed the dynamics of debts on loans in the bank and suggested ways to solve this problem using marketing. Formulated factors affecting the size of the interest payments of the bank. The impact of each category of borrowers on the overall increase in interest payments is determined. Analysed the dynamics of debts on loans in the bank and suggested ways to solve this problem using marketing. The authors propose to use a set of economic indicators to assess the effectiveness of the loan portfolio. The proposed improved methodology for the formation of an optimal loan portfolio of the bank. The article substantiates that the rate of loan turnover and the terms for using a loan are very different in types of loans. The article uses the methods of regression analysis, probability theory, economic and mathematical statistics. The study period is 2016-2017. The study confirms that with an equal degree of risk, banks prefer a loan product with a higher yield, that is, loans extended to legal entities. The results of economic indicators allow bank managers to evaluate the estimated bank ratios used when finding the maximum loan amount. Based on this analysis, the bank's management can assess the credit market conditions, make reasoned strategic decisions and reduce credit risks.

show abstract

Relationship between competition and efficiency in the Czech banking industry

Cited by 4 publications

References 26 publications

Canadian Banking Industry Profitability: Exploring the Relevance of Two Competing Hypotheses

Canadian Banking Industry Profitability: Exploring the Relevance of Two Competing Hypotheses

The Impact of Banking Concentration on Investment and Economic Growth in Jordan

Marketing and management of credit portfolio of a commercial bank: data of economic and statistical analysis of basic parameters of credit

Contact Info

Product

Resources

About