Financial Liberalization and Foreign Bank Entry on the Domestic Banking Performance in MENA Countries

Abstract: This study examines the impact of financial liberalization and foreign bank entry on the domestic banking sector from 1996 to 2007, and builds upon and expands the work of Lee (2002). We find that foreign bank entry, financial liberalization, ownership structure and degree of openness of foreign bank entry positively impact domestic banking system operating efficiency, capitalization, risk management, long‐term soundness, financial performance as well as economic and financial development. However, foreign bank entry is associated with reduced profit margins and increased operating costs of domestic banks in countries with less developed capital markets. Empirical evidence seems to support the argument that foreign bank presence leads to better allocation of capital and eliminates connected lending practices.     

EXPLAINING THE MARKET POWER OF GHANAIAN BANKS1

A competitive banking system helps lower transaction costs and risks. It also helps make financial markets more efficient. In Ghana however, observers believe that the banking industry is not competitive and point to the huge spread between bank lending and borrowing rates as evidence. The Ghanaian banking industry is analysed for evidence of market power by computing the Lerner Index of banks using quarterly data from 2001 to 2006. The evidence is that Ghanaian banks possess market power. Factors that significantly explain the market power of Ghanaian banks are: bank size, efficiency of banks with respect to staff costs, the macroeconomic environment and time.     

The Competitiveness of Commercial Banks in Ghana

Abstract: The paper empirically investigates the degree of bank competition and intermediation efficiency in Ghana. The evidence obtained suggests a non‐competitive market structure in the Ghanaian banking system, which hampers financial intermediation. The study also finds that Ghanaian banks are monopolistically competitive. It is argued that the structure, as well as the other markets characteristics, constitutes an indirect barrier to entry thereby shielding the large profits in the Ghanaian banking system. Further, it is argued that policies that encourage and stimulate greater consolidation in the financial sector would go a long way to enhance competition among banks and improve efficiency and profitability.     

Competitiveness and Efficiency of the Banking Sector and Economic Growth in Egypt

Abstract: This paper investigates the impact of financial reforms on competitiveness and production efficiency of the banking sector, as well as the short‐term and long‐term impact on economic growth, in Egypt during 1992–2007. The results suggest that the reforms have a positive and significant effect on competitiveness and production efficiency. Also, the evidence shows that state‐owned banks are generally less competitive than private banks and foreign banks are less competitive than domestic banks. The average x‐inefficiency of Egyptian banks is around 30 per cent, which is comparable to those reported for other African countries. Finally, there is evidence to suggest a significant relationship between financial bank productive efficiency and economic growth in the short run but not in the long run. Overall, the results support the argument for continuing the financial sector reform programme in Egypt.     

外资银行进入对东道国银行业效率的影响——东欧国家的经验与中国的实践

东欧国家银行改革的经验表明,外资银行进入能普遍提高东道国银行业的效率。但是,外资银行发挥积极作用亦取决于一定条件:东道国经济发展水平、银行业规模及发育程度、监管水平、银行业的改革路径和引资方式。本文在综述东欧国家银行业改革经验的基础上,提出中国银行业改革的7个命题,并用中国24家银行1999～2006年间的数据构建模型进行检验,最后得出结论:短期内外资银行进入会导致东道国银行业利润水平下降、风险管理水平上升,在中国的背景下可以认定这是外资银行积极作用的发挥;外资银行机构数量的增加和持股比重的上升都能刺激中国银行业效率的改进,但是外资银行持股比重的影响更具普遍性;不同类型银行对外资银行进入的反应存在差异,国有商业银行反应比较迟钝,而股份制和城市商业银行反应比较迅速。     

Evaluating the effectiveness of China's financial reform—The efficiency of China's domestic banks

This paper estimates the cost and profit efficiency of the Chinese domestic banking sector to evaluate the effectiveness of China's financial reforms since 1978. We use the performance of foreign banks as the benchmark because foreign banks, subject to intensive worldwide competition, are perceived as possessing superior governing structure and organization, more advanced technologies and better trained labor force. On the other hand, competition in China's banking sector is mainly in the form of nonprice measures, thus putting foreign banks at a disadvantage. We find domestic banks have gradually caught up the cost advantage of foreign banks in a manner consistent with the increased competitive pressure. On the other hand, the profit advantage of domestic banks over foreign banks is widening because of institutional arrangements, cultural and social networks as well as the profit scope and revenue scale economy.     

动态竞争与企业核心竞争力

随着我国加入WTO和金融市场的进一步开放 ,银行业必然面临着来自外资银行的激烈竞争。对我国银行业而言 ,外资银行在资金、技术、经营管理和金融创新等诸多方面都存在明显优势 ,尤其在客户关系管理 (CRM方面已有丰富经验。而到目前为止 ,我国银行业在实施CRM尚处于起步阶段 ,     

The relationship between revenue diversification and bank performance: Do financial structures and financial reforms matter?

This paper contributes to the existing literature by investigating the impact of revenue diversification on bank performance through a broad array of financial reforms, including credit controls, interest rate controls, entry barriers, banking supervision, privatization, and financial account restrictions. This analysis is the first to investigate whether financial structures (bank- or market-based systems) change the effect of diversification on individual bank performance. We use a panel dataset sample from 29 Asia-Pacific countries covering the period between 1995 and 2009, for a total of 2372 banks. Unlike the results of previous studies based on data from the U.S. and Europe, this study confirms the hypothesis of the portfolio diversification effect for the Asia-Pacific banking industry. For bank-based groups, bank performance can be improved through diversification, supporting the “bank-based view” hypothesis. Finally, under different financial systems, the relationships among revenue diversity, financial reforms, and bank performances are multidimensional.     

中国外资银行服务贸易自由化的经济影响研究——基于可计算一般均衡SIC-GE模型的定量分析

本文利用2005～2009年以来我国逐渐取消外资银行进入壁垒的实际数据,通过设立银行业收益和成本方程发现并估算出消除壁垒带来的两方面行业直接效应,即外资银行服务价格水平下降1.9%和国内银行业经济效率改进1.8%。在此基础上利用国家信息中心可计算一般均衡模型(SIC-GE)就壁垒消除对整个经济体的影响进行了系统评估。测算结果表明,两个直接效应中,改进国内银行业经济效率的经济影响是主要的;从宏观层面上看,短期内能够带来就业和GDP相对基准情景增长,同时居民消费、投资和出口有所增长。进口随着国内需求的扩张略有增长,净出口明显扩大。总体上,研究结果表明,2005年以来我国逐渐取消外资银行贸易壁垒是一项较为有效的政策举措,具有较好的示范作用。     

外资银行进入对我国银行业竞争格局的影响

本文以波特的"五力"模型为分析工具,力图分析外资银行进入对我国银行业竞争格局的影响,认为国内银行业在中国加入WTO之后面临着外资银行进入的竞争挑战。因此,国内银行业要实施创新,提高创新能力,从而提高竞争力。     

The Competitiveness and Efficiency of the Financial Services Sector in Africa: A Case Study of Kenya

Abstract: This paper reviews the broad structural shifts in banks and other financial institutions in Kenya in the face of globalization. It is found that Kenya has moved into universal banking, reflected by the gradual elimination of ‘specified’ non‐bank financial institutions since 1994 and the increased share of net commissions and fees in the banks’ total income, from 10 per cent in 1998 to 21 per cent in 2007. The evidence suggests that the sector experienced reduced concentration and presumably more competition during 1998–2007. Further, it is found that small banks are the least competitive (most concentrated), followed by large banks and then medium‐sized banks.     

Bank performance and its determinants in Korea

In this study we develop a measure of bank performance based on the Malmquist index approach. This measure supplements existing financial ratios such as ROA and ROE by addressing some of limitations of these ratios. In our empirical investigation building upon the Malmquist index measure as well as the profitability ratios, we never find convincing evidence of economies of scale present in the Korean banking sector. It also appears that a certain type of ownership such as foreign international banks has the potential to significantly improve bank performance while the management control of government or foreign buyout funds has mainly unfavorable effects on bank performance.     

Competition in Turkish Banking: Impacts of Restructuring and the Global Financial Crisis

This paper investigates the evolution of competition in the Turkish banking industry by taking into account the transformation in the sector in the aftermath of the country's financial crisis of 2000 to 2001 and the global financial crisis. The results demonstrate that the level of competition in the system did not increase despite the restructuring that was undertaken and the increased foreign bank participation. In addition, the level of competition in the sector deteriorated during the global crisis. There is also some evidence that the market power of banks with different ownership characteristics varied and did not converge over time.     

开放条件下商业银行人才储备与竞争战略

企业竞争的本质是人才的竞争,开放条件下的商业银行竞争环境发生了很大变化,银行业全面对外资开放,不仅外资银行开始经营人民币业务,国内较大的商业银行也开始在海外并购。国内银行业本身的竞争日益激烈,不仅体现在传统的存款和贷款业务的争夺,在中间业务创新和表外业务方面的竞争也更加激烈。由于竞争的对象和规则发生了变化,建立人才储备战略的必要性大大增强。     

“Following” or “attracting” the customer? Japanese Banking FDI in Europe

Using firm-level Japanese FDI data on investment into 18 European countries between 1970–2000 in all industries (banking, manufacturing, wholesale/retail distribution, and business services), this study examines if the “follow the customer” (FTC) hypothesis holds for firm-level data. The results suggest that banks do follow their customers into a foreign market, as part of a larger strategy that goes beyond the FTC theory. The firm level data show that the majority of FDI into a host country occurs after the foreign bank has established operations. Policy implications of this finding include the suggestion that host economies liberalize their financial sector early in an effort to attract banking FDI which then will attract non-banking FDI rather than the reverse.     

基于改进逼近理想解排序法的上市银行竞争力评价

在经济一体化、金融全球化的激烈竞争环境下,上市银行如何长期维持自身竞争优势,如何对银行业竞争力进行有效评价,从中探索发展方向格外重要。从基础资源、盈利能力、流动能力、风险管控能力、发展能力五个方面对我国上市银行进行竞争力评价,采用改进的理想解排序法对16家上市银行进行综合评价及竞争力排序,从而使各个银行可以发现其在同行业竞争中的优劣势,并提出改进的建议。     

我国银行业现状及其对金融安全的潜在影响

文章分析了我国银行业的现状以及我国银行体系的高风险对金融安全的潜在影响。面临银行业的全面开放，要维护我国的金融安全，必须双管齐下，既要注重完善我国银行业的监督管理制度和内部约束机制，从银行业改革和完善的角度寻找维护我国金融安全的对策，又要重视加强对外资银行的监管，确保我国的金融安全。     

Bank consolidation and competitiveness: Empirical evidence from the Korean banking industry

The Korean government consolidated several banks following the Asian Financial Crisis of 1997–1998 to stabilize the financial market and to improve international competitiveness. This process has brought sound capital reserves, assets and profitability to the banking industry. However, due to the resulting increase in market concentration, this process has also produced concerns about the monopolistic and oligopolistic power of the banks. Recently, the growing concern within the government is the weakening of bank competition due to the sharp increase in market concentration. This study reviews and examines the status of bank consolidation and the competitive structure of the banking industry. The degree of competitiveness in the banking industry is analyzed using the Panzar and Rosse model with a non-structural approach and data from 1992 to 2007 (before the beginning of the 2008–2009 Global Financial Crisis). This time span is divided into a pre- and a post-bank consolidation period. The estimation results indicate that monopolistic competition in the market exists but that the competitiveness of the banks has improved with the increased market concentration. This finding contradicts previous beliefs regarding the increased risk and lower competition derived from a concentrated financial system.     

Is There a Bank Lending Channel in Southern African Banking Systems?

Abstract: Macroeconomic models currently used by policymakers generally assume that the functioning of financial markets can be fully summarized by financial prices, because the Modigliani and Miller (1958) theorem holds. However, the assumption that this theorem holds is questionable. This paper argues that there are frictions in the market which traditional models based on the Modigliani and Miller theorem fail to take into account in explaining how monetary policy and other shocks are transmitted to the economy and points to new directions. A comprehensive macroeconomic model should incorporate financial market interactions to enhance the understanding of the transmission mechanisms of monetary policy and other shocks. If market dynamics are not taken into account, macroeconomic models used by policymakers may point to wrong policy choices. Motivated by the lack of assessment of the recently launched financial reforms, deregulation, consolidations, financial innovations and joint payment systems, the paper assesses the process of monetary transmission mechanism by investigating evidence of a bank lending channel in SADC during the period 1990–2006 using data from the banking sector. Data from a panel of banks is used to identify shifts in the loan supply curve in response to changes in monetary policy using a vector autoregression (VAR) model. Although the results are mixed the paper generally reports the existence of a bank‐lending channel in all SADC countries in the sample. The take‐off point for monetary policy effects differs from one country to another.     

中国银行业结构性变迁(1897-1927年)

自清朝末年到南京国民政府成立之前,中国银行业在相对宽松的条件下成长起来。以政府控制下"官护"性质银行的兴办为起点,中国银行业在30年间相继出现官办银行、官商合办、商办官护、私人民营、民营股份制等组织形式,在南京国民政府垄断银行业之前,较为丰富的现代银行体系雏形初步建立。在这一进程中,中国银行业呈现出"单一——分散——集中"的结构性变迁特征,由最初单一化的"官护"银行为主发展为数量庞大、较为分散的行业结构,最终在银行间联合发展作用下实现中国银行部门的集中。同时,中国银行业在资本实力和业务经营等方面实现突破性发展。尽管这一时期仍处于发展的幼稚阶段,但这一关键的起步对之后中国银行业的发展具有积极的推动作用。另外,这一时期中国银行业通过集中、联合发展实现与外国在华银行和旧式钱庄的抗衡,以史为鉴,这对当下中国银行业的发展而言,具有一定的历史借鉴意义。