516 research outputs found
Bank pricing under oligopsony-oligopoly: Evidence from 103 developing countries
No full textWe propose a generic oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries. We derive a pricing structure that acknowledges market power in both the deposit and loan markets and identify two theoretical components to the loan rate: a rent extraction component resulting from the interaction between the choke price of loans and prevailing banking structures, and a markup on deposit funding costs that captures the transformation efficiency of financial intermediation. We then test our structural specification with longitudinal data for 103 non-OECD countries and find that both the market structure under uncertainty and the deposit rate matter significantly in pricing. However, the role played by the rent-extraction share in pricing, on average, dominates funding costs in developing countries, and so underscores the importance of market structure in banks’ pricing power.intermediation; bank pricing; market structure; uncertainty; developing countries
Human resource management with reference to Lebanese banks - by Rima Turk Ariss
No full textProject (M.M.B.)--Institute of Money and Banking, A.U.B., 1990.Bibliography: leaf [32]
On the implications of market power in banking: Evidence from developing countries
No full textThis paper investigates how different degrees of market power affect bank efficiency and stability in the context of developing economies. It sheds light on the competition-stability nexus by documenting and analyzing the complex interactions between a tripod of variables that are central for regulators: the degree of market power, bank cost and profit efficiency, and overall firm stability. The results show that an increase in the degree of market power leads to greater bank stability and enhanced profit efficiency, despite significant cost efficiency losses. The findings lend empirical justification to the traditional view that increased competition may undermine bank stability, and may bear significant implications for stressed banking systems in developing economies.Bank efficiency Financial stability Lerner Market power
Financial liberalization and bank efficiency: evidence from post-war Lebanon
No full textThe process of financial liberalization has stiffened competition in an environment characterized by a revolution in information technology and provided an incentive for bank management to focus on improving efficiency. To date, limited studies were conducted for Middle East banking sectors, a region with great potential for cross-border financial integration. This article uses a unique data set from post-war Lebanon to investigate, (1) how bank efficiency is evolving subsequent to a period of deregulation, (2) how well large banks are performing relative to small banks and (3) how efficiently are domestic banks competing with foreign banks. The average cost inefficiency of Lebanese banks appears to be small (around 12%) compared to the results reported in the literature. The findings indicate that cost efficiency has improved over the period under study, that consolidation in the financial sector has enhanced banking efficiency and that domestic banks are as efficient as foreign banks.
Competitive behavior in Middle East and North Africa banking systems
No full textThis paper investigates the degree of market power in Middle East and North Africa (MENA) banking systems where research on competitive conditions is scant. The banking sectors of MENA countries are highly concentrated and they present unique characteristics in terms of ownership, structure and growth potential. The degree of competitiveness is assessed based on the revenue elasticity to input prices approach, and is related to a set of market and contestability indicators. The results show that, except for countries in North Africa where monopolistic conditions are found, the prevailing market structure in MENA banking is mostly monopolistically competitive. In line with the finding on other emerging and developed countries, assuring greater market contestability by allowing more foreign bank participation and reducing activity restrictions on banks is most important to guaranteeing competitiveness in the highly concentrated banking systems of the MENA region.MENA countries Market structure Competition Contestability Panzar and Rosse methodology
Competitive conditions in Islamic and conventional banking: A global perspective
No full textI analyze the competitive conditions prevailing in Islamic and conventional global banking markets, and investigate the possible differences in profitability between these markets, using a sample of banks across 13 countries during 2000-2006. The results suggest that Islamic banks allocate a greater share of their assets to financing activities compared to conventional banks, and they are also better capitalized. Different computed measures of competition indicate that Islamic banking is less competitive compared to conventional banking. A second-stage analysis shows that profitability significantly increases with market power, but this does not warrant higher profitability levels for Islamic banks.Bank competition Panzar and Rosse method Lerner index Islamic banks
Credit conditions and firm investment: Evidence from the MENA region
No full textThe Arab Spring is a clear indicator of the urgency of achieving inclusive growth and ensuring job creation in the Middle East and North Africa (MENA) region, where private sector development is still hindered by limited access to credit. Following Kiyotaki and Moore's (1997) seminal model, we apply a novel methodological approach to a unique data set of MENA firms to estimate credit limits and their impacts on capital accumulation. Notably, we find higher credit limits in countries where the Arab Spring erupted than in other MENA countries and that their marginal effect on capital accumulation has been statistically and economically significant
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