INTEGRATION AND COMPETITION IN THE EUROPEAN FINANCIAL MARKETS

Francisco Perez, Joaquin Maudos () and Juan Francisco Fernández de Guevara Radoselovics
Additional contact information
Juan Francisco Fernández de Guevara Radoselovics: Instituto Valenciano de Investigaciones Económicas
Authors registered in the RePEc Author Service: Juan Fernández-de-Guevara ()

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: Financial integration in Europe should affect the competition between markets and intermediaries and generate a convergence of both interest rates and margins among the different countries. This paper analyses the evolution of the convergence in interest rates and the level of competition and its inequalities among the European banking systems for the period 1993 to 2001. The inequality index used ?the Theil index- allows us to break down the inequalities so that the importance of either a country effect or a specialization effect is quantified. If the former effect dominates it would mean that the national banking markets are segmented as a consequence of the existence of obstacles or barriers to the integration. On the other hand, the dominance of the latter effect would be related to the different level of competition depending on the type of banking specialization. La integración financiera en Europa debe producir efectos sobre la competenciaentre mercados e intermediarios (reducción de precios, costes de intermediación ymárgenes) y generar convergencia en tipos de interés y márgenes entre países. Estetrabajo analiza la evolución de la convergencia en tipos de interés y el nivel decompetencia en los sectores bancarios europeos en el periodo 1993-2001. Además, seestudia el grado de desigualdad de los niveles de competencia mediante la aplicacióndel índice de Theil. Este índice permite la descomposición de la desigualdad de formaque se cuantifica la importancia de tanto efectos país como efectos especialización. Silos primeros dominasen querría decir que los mercados bancarios nacionales estaríansegmentados como consecuencia de la existencia de barreras u obstáculos a laintegración. Por otro lado, si dominasen los efectos especialización, el nivel decompetencia dependería del tipo de especialización bancaria.

Keywords: integración; competencia; mercados financieros europeos. integration; competition; European financial markets (search for similar items in EconPapers)
JEL-codes: F36 G15 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2003-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published by Ivie

Downloads: (external link)
http://www.ivie.es/downloads/docs/wpasec/wpasec-2003-12.pdf Fisrt version / Primera version, 2003 (application/pdf)

Related works:
Journal Article: Integration and competition in the European financial markets (2007)
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:ivi:wpasec:2003-12

Access Statistics for this paper

More papers in Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) Contact information at EDIRC.
Bibliographic data for series maintained by Departamento de Edición ().