Competition in the banking sector: New evidence from a panel of emerging market economies and the financial crisis |
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Affiliation: | 1. Department of Business Administration, Athens University of Economics and Business, 76 Patission Street, GR-10434 Athens, Greece;2. IPAG Lab, IPAG Business School, 184 Boulevard Saint-Germain, FR-75006 Paris, France;3. Department of Banking and Financial Management, University of Piraeus, 80 Karaoli and Dimitriou, GR-18534 Piraeus, Greece;1. School of Economics, Finance and Marketing, RMIT University, 445 Swanston Street, Melbourne, Victoria 3001, Australia;2. Department of Banking and Finance, Monash University, Caulfield Campus, Caulfield East, Victoria 3145, Australia |
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Abstract: | This paper assesses competition across the banking systems in emerging market economies. The analysis employs the Panzar and Rosse (1987) methodology, spanning the period 2000–2012. The analysis emphasises the impact of the recent financial crisis on the extent of competition in these banking systems. The empirical findings are robust and consistent with those of previous studies, providing sufficient evidence in favour of monopolistic competition across all countries under investigation. The level of competition in these banking sectors seems to have undergone a significant decline after the recent financial crisis. This finding receives robust support from an alternative methodological approach. |
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