Effect of Liberalization on Banking Competition

Gloria Pasadilla and Melanie Milo

Development Economics Working Papers from East Asian Bureau of Economic Research

Abstract: The paper analyzes the impact of major policy changes on banking structure, performance and competition, using bank-specific data from 1990-2002. We find that the entry of more market players is correlated with drops in interest spread and profits which, partly, bespeaks of possible dissipation of previous monopoly profits of large commercial banks. We also compute the H-stat based on the Panzar-Rosse methodology and find that, in general, despite the characteristic presence of few, large commercial banks, the sector is fairly competitive, specially in the loan-granting business. Moreover, competition has increased in the latter half of 1990s, primarily due to the presence of more small commercial banks, rather than big banks.

Keywords: banking reform; bank liberalization; h-statistics; competition policy; Panzar- Rosse methodology (search for similar items in EconPapers)
JEL-codes: G21 O10 O16 (search for similar items in EconPapers)
Date: 2005-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.eaber.org/node/22676 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/22676 [301 Moved Permanently]--> https://www.eaber.org/node/22676 [301 Moved Permanently]--> https://www.eaber.org/node/22676 [301 Moved Permanently]--> https://www.eaber.org/node/22676 [301 Moved Permanently]--> https://www.eaber.org/node/22676 [301 Moved Permanently]--> https://www.eaber.org/node/22676 [301 Moved Permanently]--> https://www.eaber.org/node/22676 [301 Moved Permanently]--> https://www.eaber.org/node/22676)

Related works:
Working Paper: Effect of Liberalization on Banking Competition (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eab:develo:22676

Access Statistics for this paper

More papers in Development Economics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().