Competition and diversification in the European Banking Sector

Căpraru, Bogdan; Ihnatov, Iulian; Pintilie, Nicoleta-Livia

doi:10.1016/j.ribaf.2018.09.014

Cited by 18 publications

(13 citation statements)

References 46 publications

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“…The LERNER coefficients of the TSS and TSD models calculated for the two proxy variables of bank diversification are negative and statistically significant, except for the SERVICES models. Specifically, and consistent with recent studies (Căpraru et al, 2020;Zouaoui & Zoghlami, 2020), market power is associated with less credit exposure, reflecting the general lower quantity of output under all monopolistic market conditions. Similarly, mutual banks with a higher market power are less diversified because their share of income from services is lower.…”

Section: Loanssupporting

confidence: 87%

“…A first strand maintains the assumption that market strength discourages banks from diversifying their assets and sources of profits. In this regard, Nguyen et al (2012b) conduct an empirical experiment with a sample of commercial banks operating in four South Asian countries, and Căpraru et al (2020) take a similar approach to European Union banks, with both discovering that increased market strength leads to a greater emphasis on traditional interest income‐generating activities. However, another stream of the literature reveals that monopolistic rents in traditional activities can encourage banks to diversify their activities (e.g., Nguyen et al, 2016; Ovi et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

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Do spatial dependence and market power matter in the diversification of cooperative banks?

2022

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This study examines the determinants of cooperative banks' diversification proclivity, with consideration of the spatial dependence effect. The empirical analysis demonstrates that Italian cooperative banks operate as a network with significant spillover effects that should not be ignored. Indeed, local banks compete in the same market segment, and any shift in their diversification strategy has a cascading effect on neighbouring cooperative banks as a result of customer migration. Finally, we observe that an increase in bank market power results in a decline in local bank lending activity.

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Section: Loanssupporting

confidence: 87%

Section: Introductionmentioning

confidence: 99%

Do spatial dependence and market power matter in the diversification of cooperative banks?

2022

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“…The strategic location of Europe in terms of international trade can be suggested as one of the most important reasons for boosted competition in the European banking sector. With the purpose of handling this challenge, European banks pay an enhanced attention to research and development, customer satisfaction, new product development and organizational efficiency (Căpraru et al 2020).…”

mentioning

confidence: 99%

Fintech investments in European banks: a hybrid IT2 fuzzy multidimensional decision-making approach

et al. 2021

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Financial technology (Fintech) makes a significant contribution to the financial system by reducing costs, providing higher quality services and increasing customer satisfaction. Hence, new studies play an essential role to improve Fintech investments. This study evaluates Fintech-based investments of European banking services with an application of an original methodology that considers interval type-2 (IT2) fuzzy decision-making trial and evaluation laboratory and IT2 fuzzy TOPSIS models. Empirical findings are controlled for consistency by applying the VIKOR method. Moreover, we conduct a sensitivity analysis by considering six distinct cases. This study contributes to the existing literature by identifying the most important Fintech-based investment alternatives to improve the financial performance of European banks. Our empirical findings illustrate that results are coherent, reliable, and identify “competitive advantage” as the most important factor among Fintech-based determinants. Moreover, “payment and money transferring systems” are the most important Fintech-based investment alternatives. It is recommended that, among Fintech-based investments, European banks should mainly focus on payment and money transferring alternatives to attract the attention of customers and satisfy their expectations. This is also believed to have a positive impact on the ease of bank’ receivable collection. Another important point is that Fintech-based investments in money transferring systems could help to decrease costs.

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“…Além disso, os achados desta pesquisa contribuem com a literatura por trazer novas perspectivas sobre como o ambiente de negócios é afetado pelas características dos países, considerando a utilização da modelagem multinível em 3 níveis (HLM 3), diferentemente das pesquisas de Lourenço et al (2018), Picur (2004), Riahi-Belkaoui (2004), Riahi-Belkaoui e Alnajjar (2006) e Santos e Takamatsu (2018), que utilizaram a regressão múltipla por Ordinary Least Squares (OLS) para a análise da relação entre corrupção e as variáveis de nível operacional das firmas. A análise multinível é uma técnica mais adequada para amostras com estruturas agrupadas, como a amostra utilizada nesta pesquisa, pois reconhecem a presença de tais hierarquias de dados, permitindo componentes residuais em cada nível na hierarquia (Căpraru et al, 2018).…”

Section: Implicações Práticas 1 Introduçãounclassified

Corrupção dos países e book-tax differences anormal: uma análise multinível

2022

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Esta pesquisa se propôs a investigar se a corrupção percebida, característica do ambiente institucional dos países, apresenta relação com a book-tax differences anomal (BTDA) das companhias abertas. A amostra contempla 170.543 observações, pertencentes a 99 países no período de 2012 a 2018, que foram analisadas por meio de modelagem multinível. A hipótese de pesquisa, que aborda a associação positiva entre a BTDA e a corrupção percebida dos países, não foi rejeitada para a amostra total e para o grupo de países adotantes das International Financial Reporting Standards (IFRS). Isso sugere que para o grupo de adotantes das IFRS, a maior flexibilidade resultante da internacionalização das normas é utilizada oportunisticamente pelos gestores, que possivelmente são influenciados pela baixa qualidade do ambiente institucional em termos de corrupção. Os achados corroboram a premissa de que a baixa qualidade dos lucros das companhias está associada a maior corrupção percebida dos países. A pesquisa contribui com a literatura por trazer novas perspectivas sobre como o ambiente de negócios é afetado pelas características dos países, considerando a utilização da modelagem multinível, técnica mais acurada para amostras com estruturas agrupadas.

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Competition and diversification in the European Banking Sector

Cited by 18 publications

References 46 publications

Do spatial dependence and market power matter in the diversification of cooperative banks?

Do spatial dependence and market power matter in the diversification of cooperative banks?

Fintech investments in European banks: a hybrid IT2 fuzzy multidimensional decision-making approach

Corrupção dos países e book-tax differences anormal: uma análise multinível

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