Market power among UAE banks: The 2008 financial crisis and its impact
The Quarterly Review of Economics and Finance, 2019, vol. 71, issue C, 56-66
This paper investigates the impact of the global financial crisis with respect to the level of market power across 31 banks in the UAE. By employing the Lerner index and exploring the evolution of market power over time, we observe that the financial crisis had a negative effect on UAE banks, which lost a substantial degree of their market power. Furthermore, bank-level market power during the crisis period appears to have varied significantly with respect to certain bank characteristics. Specifically, the market power of those banks that were less-capitalized and less efficient, decreased particularly significantly during the crisis period. Interestingly, banks with a high level of market share were also unable to preserve their power. We compare these results systematically with those obtained for banks located in the MENA region. Overall, our results support the argument that the crisis severely reduced bank performance, not only in advanced economies, but also in emerging markets, although the adverse outcome is heterogeneous across specific banks.
Keywords: Bank market power; Financial crisis; The UAE; MENA (search for similar items in EconPapers)
JEL-codes: D4 G01 G21 L10 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:71:y:2019:i:c:p:56-66
Access Statistics for this article
The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty
More articles in The Quarterly Review of Economics and Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().