• KDI Journal of Economic Policy
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• 제38권1호
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• pp.53-70
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• 2016

This paper examines market concentration and its effect on competition in the Chinese commercial banking market. This study also investigates how changes in competition have affected the financial stability of Chinese commercial banks. To test the competitive conditions, we obtained the H statistic of the Panzar-Rosse model from a revenue function equation. The degree of financial stability is estimated by the Z-score formula. The Chinese banking industry has become an increasingly less concentrated market with an increased number of banks. Along with a decreased market concentration, competition in the Chinese banking industry has improved moderately. However, its market structure is still far from a competitive market. An individual bank's ability to earn higher markup or charge a higher net interest margin contributes to its financial soundness, although a higher degree of market concentration may have negative effect on the financial stability of the entire banking system.

• The Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.707-715
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• 2020

Globalization has led to an increase in foreign banks' penetration. It is argued that the presence of foreign banks may affect the banking sector of the host countries in several ways including their competition level. It is mentioned that the presence of the foreign banks could heightened the level of competition in the banking sector. Nonetheless, the impact of the foreign banks on competition could be influenced by the degree of information sharing in the banking industry. This study investigates the role of information sharing in moderating the impact of foreign bank penetration on host banking sector competition in selected developing countries. We employ panel data samples of 54 developing countries during the period from 1998 to 2016. The estimation is carried out using the two-step system of the Generalized Method of Moments (GMM) regression technique. This technique is adopted due to its robustness to all forms of endogeneity. The findings of this study show that the presence of information sharing could affect the relationship between foreign banks' penetration and competition. They suggest that improvement in information sharing by a host country may help foreign banks to improve monitoring and reduce the moral hazard and adverse selection problem.

• The Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.759-768
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• 2020

The purpose of this study is to assess the state of competition in Nepalese banking over the period from 2010 to 2019. This study employs panel data and a non-structural Panzar-Rosse model to measure the degree of competition in the Nepalese banking industry. The first reduced-form equation is applied to gauge competition, and the second model is used to test the long-run equilibrium in the banking market. The finding reveals that the Nepalese banking market is equilibrium in the long-run. It implies that the factor prices do not affect ROA in the long-run. The result of the H-statistic shows that the Nepalese banking system is operating under the state of perfect competition and is shifted from monopolistic competition to perfect competition. The reduced-form model reveals that the interest income is positive and significantly affected by factor prices. Similarly, the macroeconomic variable GDP growth is positively related to interest income. On the contrary, the bank's specific factors risk and the number of bank branches are inversely associated with the regressand. The outcomes of the study may be advantageous to the policymakers, especially to Nepal Rastra Bank to implement monetary policy and M&A policy for the stability and growth of the financial system of Nepal.

• 유통과학연구
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• 제14권6호
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• pp.39-44
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• 2016

Purpose - This paper aims to study the competition that occurs in the Islamic Banking industry and to analyze the variables that affect the total revenue of Islamic Banking in Indonesia. Research Design, Data and Methodology - This study observed 10Islamic banks for the period 2010-2013. The annual data are taken from Direktori Perbankan Indonesia, published by Bank Indonesia, and annual report of the observed banks. In analyzing data, Panzar Rosse Approach was applied to analyze the type of Islamic Bank Market and Panel Regression Model for the estimated co-efficients has been used in the Panzar Rosse Approach. Results - Estimation model shows that all the banking cost elements such as the price of capital, unit price of labor, and unit prices of funds have significant positive correlation to Revenue as a dependent variable. The estimated value of H-statistic for the period 2010-2013 is 0.69. It can be interpreted that Islamic banking market in Indonesia shows monopolistic competition. Price of capital and funds has statistically significant effect on Bank's Revenue. Conclusions - The study revealed that the Islamic banking market competition in Indonesia is monopolistic and the major contribution to the H-statistic comes from mainly price of funds.

• 한국산학기술학회논문지
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• 제17권1호
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• pp.225-233
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• 2016

본 논문은 은행산업의 경쟁정도가 개별은행의 위험추구 성향에 미치는 영향을 파악하기 위한 실증분석을 수행하였다. 기존 연구에서 위험추구 성향을 나타내는 지표로 주로 사용하였던 고정이하여신비율은 위험을 사후적으로 반영하는 지표라는 점에서 한계점을 지니고 있는데 이에 본 연구에서는 위험을 사전적으로 측정하는 자산위험도를 새로운 위험추구의 지표로 제안하고 이를 이용하여 분석을 수행하였으며 그 결과 은행의 경쟁정도와 위험추구 성향 간에는 음의 관계가 존재함을 확인할 수 있었다. 한편 고정이하여신비율을 위험추구의 지표로 사용하여 동일한 분석을 수행한 경우에는 정반대의 결과가 나타나는 흥미로운 사실을 발견할 수 있었다. 즉 위험추구의 지표로 어떤 변수를 선택하는지에 따라 은행산업의 경쟁도와 위험추구의 관계는 정반대의 결과가 나타나고 있다는 것인데 이는 논리적으로 어떠한 지표가 은행의 위험추구 성향을 더 잘 나타낼 수 있는 것인가를 살펴봄으로써 해결할 수 있을 것이다. 자산위험도는 위험추구성향이라는 개념에 논리적으로 더욱 잘 부합하며 또한 위험추구성향 외의 요인에 의한 영향을 덜 받을 것이라는 측면에서 더 적절한 지표인 것으로 판단된다.

• KDI Journal of Economic Policy
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• 제25권1호
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• pp.55-98
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• 2003

본 연구는 국내 은행산업의 대형화 및 시장집중도 상승에 따른 은행서비스 시장의 경쟁저하 및 독과점화 우려에 대해 실증적인 분석을 시도한 것이다. 실증분석은 1996년 1월부터 2002년 12월까지 84개월 동안의 은행산업 관련자료를 이용한 Bresnahan-Lau 방법, 즉 은행서비스에 대한 수요함수와 공급함수를 추정하는 방법으로 진행되었다. 추정결과는 전체 표본기간 동안에는 국내 은행산업이 완전경쟁 수준의 가격설정행태(pricing behavior)를 보였으며, 시장집중도 상승을 고려하여 표본기간을 구분할 경우 구분시점에 따라 다소 차이는 있으나, 일반적인 우려와는 달리 시장집중도가 상승한 이후에 적어도 현재까지는 경쟁이 저하되지는 않았다는 것을 시사하고 있다.

• The Journal of Asian Finance, Economics and Business
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• 제8권2호
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• pp.317-328
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• 2021

This study examines the impact of bank competition and efficiency in the financial stability of the banking sector in Bangladesh. The study used the Lerner index and the Boone indicator to represent the bank competition, while the non-performing loan (NPL) and Z-score are used to represent financial stability. The secondary data were collected from the annual reports of 28 DSE listed commercial banks of Bangladesh over the period from 2011 to 2018. Using a dynamic panel GMM model, the study found the Lerner index is significantly negatively related with Z-score, which means that higher bank competition results in higher bank stability. It is also seen that higher cost efficiency results in higher bank stability. The Lerner index has negative, but insignificant impact on NPL. Similarly, using the Boone indicator, this study found that lower competition increases NPL. In terms of the Z-score, the Boone indicator found that 1 unit of increment results in decrease of the Z-score by 6.15 units. The study suggests that, as more competition results in more financial soundness, the banking industry competition should be ensured by policymakers or regulators. Banks could enhance financial stability by cost control to achieve cost efficiency as well as by improving loan-to-asset ratio.

• 아태비즈니스연구
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• 제14권4호
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• pp.431-444
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• 2023

Purpose - This study applies the traditional Structure-Conduct-Performance (SCP) model from industrial organization theory to investigate the relationship between market structure and performance in China's banking industry. Design/methodology/approach - For analysis, financial data from the People's Bank of China's "China Financial Stability Report" and financial reports of 6 state-owned banks and 11 joint-stock banks for the period 2010 to 2021 were collected to create a balanced panel dataset. The study employs panel fixed-effects regression analysis to assess the impact of changes in market structure and ownership structure on performance variables including return on asset, profitability, costs, and non-performing loan ratios. Findings - Empirical findings highlight significant differences in the effects of market structure between state-owned and joint-stock banks. Notably, increased market competition positively correlates with higher profits for state-owned banks and with lower costs for joint-stock banks. Research implications or Originality - State-owned banks demonstrate larger scale and stability, yet they struggle to respond effectively to market shifts. Conversely, joint-stock banks face challenges in raising profitability against competitive pressures. Additionally, the study emphasizes the importance for Chinese banks to strengthen risk management due to the increase of non-performing loans with competition. The results provide insights into reform policies for Chinese banks regarding the involvement of private sector in the context of market liberalization process in China.

• 서비스연구
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• 제10권1호
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• pp.17-31
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• 2020

최근 금융산업의 글로벌 트렌드인 오픈뱅킹(Open Banking)이 향후 금융시장 내 다양한 혁신을 일으키는 원동력이 되고 금융업의 분화와 재결합을 촉발하기 위해서는 올바른 정책방향과 세부 과제의 추진이 중요하다. 본 연구는 오픈뱅킹의 등장배경, 국내외 동향 그리고 한국의 오픈뱅킹 정책을 조사·분석하고, 오픈뱅킹 제도의 성공적인 안착과 활성화를 위한 정책방향과 추진과제를 제언하고자 한다. 오픈뱅킹은 고객의 명시적 동의를 전제로 제3자(TPP: Third Party Provider)에게 은행 계좌 등에 대한 접근을 허용하고 지급결제(Payment) 기능을 개방하는 정책이다. 오픈뱅킹 시대 개막은 은행과 핀테크 기업 간의 경쟁과 협력이 본격적으로 시작되는 계기가 되어 금융산업의 경쟁력을 높이고 금융소비자의 효용 증대에 기여할 것으로 기대된다. 이를 위해 정책당국은 개방형 금융결제 인프라 의 고도화, 오픈뱅킹 법적 근거 마련과 함께 고객 데이터 유출, 금융시스템 안정성 저하 등의 부작용을 최소화하는데 만전을 기해야 한다. 은행과 핀테크 기업은 흩어져 있는 고객 금융정보를 하나의 플랫폼으로 단순 집중하여 상품 또는 서비스를 추천하는 금융서비스의 표면적 결합을 넘어 진정한 금융서비스의 융합과 차별로 발전시켜야 할 것이다.

• The Journal of Asian Finance, Economics and Business
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• 제10권2호
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• pp.175-181
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• 2023

Competition assures improved products and services to meet customers' needs. The soundness of a firm's financial health is crucial for the country's economic well-being. Distressed companies cause investor panic, which has a knock-on effect on the economy and leads to a deterioration in the image and value of the companies. This paper aims to empirically investigate the influence of competition on financial distress (FD) in the healthcare industry using the Altman Zscore values as the proxy for FD. This study uses secondary data from ten healthcare companies operating in India between 2016 and 2020. The study's findings indicate a significant negative relation with the exogenous variables of the study, implying that a higher level of competition enhances a firm's FD or adversely affects financial health. The main implication of the study is two-pronged. Firstly, the firms' managers and decision-makers need not worry about competition as a deterrent to stability. Secondly, the policymakers need not be concerned that high competition may lead to financial stress for the firms. Therefore, this paper concludes that competition is good for firms operating in India.