Banking market power and its determinants: New insights from MENA countries |
| |
| Institution: | 1. Faculté des Sciences Economiques et de Gestion, Sfax University, Tunisia;2. Department of Economics and Statistics, University of Salerno, Italy;1. Latin American Reserve Fund, Bogotá, Colombia;2. Department of Finance, Information Systems, and Economics, City University of New York – Lehman College, Bronx, NY, USA;3. (Summer School), Escuela Internacional de Ciencias Económicas y Administrativas, Universidad de La Sabana, Chía, Colombia;4. Faculty of Economics and Business, Universitat Oberta de Catalunya, Barcelona, Spain;5. Faculty of Economics and Business, Universitat de Barcelona, Barcelona, Spain;1. Economist at the International Monetary Fund, Washington, D.C., USA;2. Department of Finance, Insurance and Real Estate, Laboratory for Financial Engineering of Laval University, Faculty of Business Administration, Laval University, Quebec, Canada;3. CEO of the Bourse Régionale des Valeurs Mobilières (BRVM), Abidjan, Côte d''Ivoire;1. School of Finance, Nankai University, China;3. School of Economics, Fujian Normal University, China;4. International Business School, Jinan University, China |
| |
| Abstract: | This paper evaluates the degree and determinants of banks' market power in 13 MENA countries for the years 2000 to 2018, with a special focus on customers' switching costs and banks' cost efficiency. We find that MENA banks enjoy a substantial degree of market power on the loan market, while their customers have to face remarkable costs in case of switching to other banks. Banking market power increases with the level of switching costs and is higher when credit institutions are more cost efficient, focus on the traditional intermediation activity, are smaller in size, and operate in countries where stock markets are less developed, banking markets are more concentrated, the inflation rate is lower, and GDP growth is poor. Our results are robust to alternative specifications and estimation techniques. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
