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Author: Jacob A. Bikker
Publisher:
ISBN: 9783902109279
Category : Bank profits
Languages : en
Pages : 88
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Book Description
This paper brings to the forefront the assumptions that we make when focussing on a particular type of explanation for bank profitability. We evaluate a broad field of research by introducing a general framework for a profit maximizing bank and demonstrate how different types of models can be fitted into this framework. Next, we present an overview of the current major trends in European banking and relate them to each model's assumptions, thereby shedding light on the relevance, timeliness and shelf life of the different models. This way, we arrive at a set of recommendations for a future research agenda. We advocate a more prominent role for output prices, and suggest a modification of the intermediation approach. We also suggest ways to more clearly distinguish between market power and effciency, and explain why we need time-dependent models. Finally, we propose the application of existing models to different size classes and sub-markets. Throughout we emphasize the benefits from applying several, complementary models to overcome the identification problems that we observe in individual models.
Author: Jacob A. Bikker
Publisher:
ISBN: 9783902109279
Category : Bank profits
Languages : en
Pages : 88
Get Book
Book Description
This paper brings to the forefront the assumptions that we make when focussing on a particular type of explanation for bank profitability. We evaluate a broad field of research by introducing a general framework for a profit maximizing bank and demonstrate how different types of models can be fitted into this framework. Next, we present an overview of the current major trends in European banking and relate them to each model's assumptions, thereby shedding light on the relevance, timeliness and shelf life of the different models. This way, we arrive at a set of recommendations for a future research agenda. We advocate a more prominent role for output prices, and suggest a modification of the intermediation approach. We also suggest ways to more clearly distinguish between market power and effciency, and explain why we need time-dependent models. Finally, we propose the application of existing models to different size classes and sub-markets. Throughout we emphasize the benefits from applying several, complementary models to overcome the identification problems that we observe in individual models.
Author: Morten Balling
Publisher: Routledge
ISBN: 1134173784
Category : Business & Economics
Languages : en
Pages : 346
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Book Description
Financial services firms play a key role in the European economy. The efficiency and profitability of these firms and the competition among them have an impact on allocation of savings, financing of investment, economic growth, the stability of the financial system and the transmission of monetary policy. This collection of research contributions includes evaluations of trends in the European financial service industry and examinations of the driving forces of efficiency, competition and profitability of financial firms and institutions in Europe. The papers have been written by leading academics and researchers in the field, who specialize in strategic, systematic and policy issues related to the European financial services industry. This edited collection will be will be essential reading for students and academics but will also be of interest to financial practitioners and government officials interested in acquiring a deeper understanding of this complex issue.
Author: Jacob A. Bikker
Publisher: Edward Elgar Publishing
ISBN: 1785363301
Category :
Languages : en
Pages : 424
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Book Description
For academics, regulators and policymaker alike, it is crucial to measure financial sector competition by means of reliable, well-established methods. However, this is easier said than done. The goal of this Handbook is to provide a collection of state-of-the-art chapters to address this issue. The book consists of four parts, the first of which discusses the characteristics of various measures of financial sector competition. The second part includes several empirical studies on the level of, and trends in, competition across countries. The third part deals with the spillovers of market power to other sectors and the economy as a whole. Finally, the fourth part considers competition in banking submarkets and subsectors.
Author: Jacob A. Bikker
Publisher: Routledge International Studie
ISBN: 9780415397667
Category : Business & Economics
Languages : en
Pages : 154
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Book Description
Introducing a general framework for a profit-maximizing bank and demonstrating how different types of models can be fitted into this framework, this work provides an overview of the major trends in European banking and relates them to each model's assumptions, shedding light on the relevance, timeliness and shelf life of the different models.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1513573527
Category : Business & Economics
Languages : en
Pages : 26
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Book Description
We examine trends in bank competition since the early 2000s. The Lerner index—arguably the most commonly used measure—shows evidence of a marked increase in market power in advanced economies, especially after the global financial crisis. But other frequently used indicators of banking sector competition seem much more muted. We show that the significant drop in policy rates that occurred in the aftermath of the crisis could explain the seeming disconnect. Adjusting the Lerner index for the impact of policy rates reveals that market power has been fairly constant in advanced economies—consistent with the other signals and similar to the pattern observed in emerging markets.
Author: Constantin Zopounidis
Publisher: Springer Science & Business Media
ISBN: 3642574785
Category : Business & Economics
Languages : en
Pages : 309
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Book Description
During the last decades the globalization, the intensified competition and the rapid changes in the socio-economic and technological environment had a major impact on the global economic, financial and business environments. Within this environment, it is clear that banking institutions worldwide face new challenges and increasing risks, as well as increasing business potentials. The recent experience shows that achieving a sustainable development of the banking system is not only of interest to the banking institutions themselves, but it is also directly related to the development of the whole business and economic environment, both at regional and international level. The variety of new banking products that is constantly being developed to accommodate the increased customer needs (firms, organizations, individuals, etc.) provides a clear indication of the changes that the banking industry has undergone during the last two decades. The establishment of new products of innovative processes and instruments for their requires the implementation efficient management. The implementation of such processes and instruments is closely related to a variety of disciplines, advanced quantitative analysis for risk management, information technology, quality management, etc. The implementation ofthese approaches in banking management is in accordance with the finding that empirical procedures are no longer adequate to address the increasing complexity of the banking industry.
Author: Jacob Bikker
Publisher: Routledge
ISBN: 1136013121
Category : Business & Economics
Languages : en
Pages : 229
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Book Description
The 2008 credit crisis started with the failure of one large bank: Lehman Brothers. Since then the focus of both politicians and regulators has been on stabilising the economy and preventing future financial instability. At this juncture, we are at the last stage of future-proofing the financial sector by raising capital requirements and tightening financial regulation. Now the policy agenda needs to concentrate on transforming the banking sector into an engine for growth. Reviving competition in the banking sector after the state interventions of the past years is a key step in this process. This book introduces and explains a relatively new concept in competition measurement: the performance-conduct-structure (PCS) indicator. The key idea behind this measure is that a firm’s efficiency is more highly rewarded in terms of market share and profit, the stronger competitive pressure is. The book begins by explaining the financial market’s fundamental obstacles to competition presenting a brief survey of the complex relationship between financial stability and competition. The theoretical contributions of Hay and Liu and Boone provide the theoretical underpinning for the PCS indicator, while its application to banking and insurance illustrates its empirical qualities. Finally, this book presents a systematic comparison between the results of this approach and (all) existing methods as applied to 46 countries, over the same sample period. This book presents a comprehensive overview of the knowns and unknowns of financial sector competition for commercial and central bankers, policy-makers, supervisors and academics alike.
Author: Federal Reserve Bank of New York
Publisher:
ISBN:
Category : Bank management
Languages : en
Pages : 402
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Book Description
Author: David A. Alhadeff
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 278
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Book Description
Author: Michael Nyarko-Baasi
Publisher: GRIN Verlag
ISBN: 3656409307
Category : Business & Economics
Languages : de
Pages : 88
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Book Description
Studienarbeit aus dem Jahr 2008 im Fachbereich BWL - Bank, Börse, Versicherung, , Sprache: Deutsch, Abstract: The banking scenario in Ghana has been changing at fast pace from being just the borrowers and lenders, traditionally, to more differentiated and customized product/service provider. The sector has moved from regulation to liberalization in the 1990s, and from planned to market economy. The Ghanaian banking has come a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The competition heated up with the entry of private and foreign banks. Deregulation and globalization resulted in increased competition that refined the traditional way of doing business. The banks have realized the importance of a customer centric approach, brand building and IT enabled solutions. In the fierce battle for market share and mind share, the most potent weapon is a strong, well recognized and trusted brand name. Brands attract and convince people that they will get what is promised. Banking today has transformed into a technology intensive and customer friendly model with a focus on convenience. The companies have redoubled their efforts to woo the customers and establish themselves firmly in the market. It is no longer an option for a bank to provide good customer service, it is expected.
