Does market power explain margins in dual banking? Evidence from panel quantile regression

Khattak, Mudeer Ahmed; Saiti, Buerhan; Khan, Shabeer

doi:10.1002/ijfe.2510

Cited by 5 publications

(1 citation statement)

References 87 publications

(116 reference statements)

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“…More recently, few papers have explored the impact of competitive conditions on various other important factors such as pricing power and the deposit rates (Khattak, Khan, et al, 2022) and credit risk (Ali et al, 2021). More recently, a very interesting theme in the domain of interest margins and the competition is explored by Khattak et al (2021). Specifically, they have investigated as to how the competitive conditions in dual banking economies drive net interest margins.…”

Section: Introductionmentioning

confidence: 99%

Competition, stability, and institutional environment: The case of dual banking economies

Azmi¹,

Anwer

Ali

et al. 2022

Int. J Fin Econ

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We measure the impact of competition and institutional quality on stability for dual banking economies. Our sample comprises 492 banks (109 Islamic and 383 conventional banks) from 17 countries with dual‐banking systems. The sample period is from 2005 to 2020. The estimations are performed using Two Step System Generalized Method of Moments approach. Our findings reveal heterogeneous effect of competition on stability. We found the evidence of competition‐stability paradigm in case of full sample as well as for Islamic banks. There is no effect of competition on the stability of conventional banks. Furthermore, there is no evidence of size effect in the competition‐stability results. The impact of legal institution is insignificant. We also observe that better quality of political and the economic institutions increases the bank stability. We attribute these findings to the conjecture that better political and/or legal institutions improve bank stability by reducing information asymmetry and adverse selection. Finally, we find the evidence that political, legal and economic dimensions of institutions have differential effect on competition‐stability relationship. The findings are robust to alternative definitions of competition, stability and different methodological approaches.

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Section: Introductionmentioning

confidence: 99%

Competition, stability, and institutional environment: The case of dual banking economies

Azmi¹,

Anwer

Ali

et al. 2022

Int. J Fin Econ

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How important is tourism for growth?

Panagiotidis,

Mussoni,

Voucharas

2023

Int. J Fin Econ

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We revisit the tourism‐led growth hypothesis by utilising a panel set of 108 countries over the period 1996–2017. We quantify the effects of tourism on the entire conditional distribution of economic growth for both relatively poor and relatively rich countries within a panel quantile regression framework. We address the unobserved heterogeneity and potential endogeneity concerns. We reveal that the lower the conditional growth rate a country experiences the more important is tourism development for the conditional growth distribution for both developing and developed countries. The size of the effect in developed countries is twice as high as in developing ones. On the other hand, tourism specialisation is beneficial only at higher quantiles of the conditional growth distribution and only for developed countries. On the contrary, it brings about an undesirable effect in developing countries. Finally, we examine the impact of a reduction in tourism activity on economic growth due to an exogenous shock (i.e., COVID‐19). Simulation analysis based on the quantile regression estimates shows that countries facing relatively low growth rates conditionally to the growth distribution are affected the most. Policymakers may consider the importance of tourism activity in the growth process and formulate strategies that align with the growth experience of each country.

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Does sectoral diversification of loans and financing improve bank returns and risk in dual-banking systems?

Šeho

Ibrahim

Mirakhor³

2021

Pacific-Basin Finance Journal

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Does market power explain margins in dual banking? Evidence from panel quantile regression

Cited by 5 publications

References 87 publications

Competition, stability, and institutional environment: The case of dual banking economies

Competition, stability, and institutional environment: The case of dual banking economies

How important is tourism for growth?

Does sectoral diversification of loans and financing improve bank returns and risk in dual-banking systems?

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