Financial Crises, Concentration and Efficiency: Effects on Performance and Risk of Banks

Sergio SANFILIPPO Azofra, Maria CANTERO Saiz, Begona TORRE Olmo and Carlos LOPEZ Gutierrez ()
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Sergio SANFILIPPO Azofra: University of Cantabria, Business Administration Faculty, Spain
Maria CANTERO Saiz: University of Cantabria, Business Administration Faculty, Spain
Begona TORRE Olmo: University of Cantabria, Business Administration Faculty, Spain
Carlos LOPEZ Gutierrez: University of Cantabria, Business Administration Faculty, Spain

Czech Journal of Economics and Finance (Finance a uver), 2013, vol. 63, issue 6, 537-558

Abstract: This paper analyzes the changes that financial crises cause in the relationship between bank market share, efficiency and profitability, as well as in the relationship between market concentration and risk. The empirical analysis was performed on a sample of 15,399 banks from major OECD countries over the period 2002–2009. The results show that market power was replaced by efficiency as the main determinant of bank profitability during the crisis. Prior to the crisis, market concentration and risk had a quadratic relationship, while thereafter the increase in market concentration produced no increase in risk.

Keywords: financial crisis; performance; risk; banks (search for similar items in EconPapers)
JEL-codes: G01 G21 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:63:y:2013:i:6:p:537-558

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