A revenue-based frontier measure of banking competition
David B. Humphrey and
Authors registered in the RePEc Author Service: Francisco Rodríguez Fernández () and
Santiago Carbo Valverde ()
No 10-9, Working Papers from Federal Reserve Bank of Philadelphia
Measuring banking competition using the HHI, Lerner index, or H-statistic can give conflicting results. Borrowing from frontier analysis, the authors provide an alternative approach and apply it to Spain over 1992-2005. Controlling for differences in asset composition, productivity, scale economies, risk, and business cycle influences, they find no differences in competition between commercial and savings banks nor between large and small institutions, but the authors conclude that competition weakened after 2000. This appears related to strong loan demand where real loan-deposit rate spreads rose and fees were stable for activities where scale economies should have been realized.
Keywords: Bank; competition (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-com and nep-eff
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.philadelphiafed.org/research-and-data/p ... pers/2010/wp10-9.pdf (application/pdf)
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:fip:fedpwp:10-9
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by ().