Industrial Organization of Banking: A Review

Neuberger, Doris

doi:10.1080/13571519884594

Cited by 60 publications

(25 citation statements)

References 78 publications

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“…This research uses a concentration ratio that consists of Concentration Ratio of the biggest four banks (CR4) and HHI as the measurement of market structure. For the behavior, this research chooses price as an indicator, because the price competition is one of conduct in analyzing the banking industry (Neuberger 1998). As banking is a profit-seeking entity, this study uses profitability as the performance of the banking sector.…”

Section: Methodsmentioning

confidence: 99%

Competition and bank profitability

Yuanita¹

2019

Economic Structures

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By issuing Indonesian Banking Architecture in 2004, the central bank of Indonesia has encouraged banking sector to consolidate. The aim of merger among others is to increase bank economies of scale. This study tries to look at the impact of merger bank on the bank performance by implementing structure conduct and performance hypothesis. Merger bank affects market structure. According to structure conduct and performance hypothesis, market structure affects bank behavior as well as bank performance. The result of this study suggests that an increase in market concentration causes a decrease in price. It shows that merger increase economies of scale so that bank can offer lower price. A decrease in price brings down bank profitability. Concentration ratio also can be used as competition measurement. It is known as a structural measure of competition. Using the structural measure, a lower competition that is shown by higher concentration ratio is associated with lower profitability. This research also analyses the relationship between competition and bank profitability using Lerner index as a non-structural measure of competition. The non-structural measure of competition shows that lower competition is associated with higher profitability. Hence, the structural measure of competition creates different result from the non-structural measure of competition.

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Section: Methodsmentioning

confidence: 99%

Competition and bank profitability

Yuanita¹

2019

Economic Structures

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“…As we shall discuss shortly and as noted as well by Neuberger (1998), Shaffer (2004a, and Degryse and Ongena (2008), developments in the theory of industrial organization have added to the menu of factors that may influence bank market structure, conduct, and performance. Let's first begin our contemplation of the industrial organization of banking with an analysis of the fundamental implications of the traditional SCP theory.…”

Section: Chapter 4 the Industrial Economics Of Bankingmentioning

confidence: 96%

The Industrial Organization of Banking

VanHoose¹

2010

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“…For example, there are social costs involved with foreign acquisitions (Neuberger 1998) which are not immediately realised after an acquisition but might become obvious in the long term and greatly impact the local economy. For instance, the change in scope and scale of the acquired banks can impact deposits and small-business lending, as well as introduce standardised products and risks at individual and system level (Amel et al 2004;Ashton 2012).…”

Section: Literature Review and Empirical Questionsmentioning

confidence: 99%

Impact of the Financial Crisis on Banking Acquisitions: A Look at Shareholder Wealth

Rao‐Nicholson

Salaber

2015

International Journal of the Economics of Business

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This paper examines the influence of the 2007-08 financial crisis on value creation for acquirer's shareholders in the banking industry using a sample of 883 deals over 2004-12. Applying an exploratory and top-down approach, banking acquisitions are considered at the global level, narrowing the analysis step by step to consider domestic versus cross-border acquisitions. Then cross-border deals are split based on the economic development of the acquirer and target countries. It is observed that only acquisitions involving emerging-economy acquirers and developed-economy targets generate positive and significant returns to shareholders after the crisis. Major changes in the global acquisition landscape are also observed since 2007, with emerging-economy banks increasing their acquisition activity, both nationally and internationally.

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Industrial Organization of Banking: A Review

Cited by 60 publications

References 78 publications

Competition and bank profitability

Competition and bank profitability

The Industrial Organization of Banking

Impact of the Financial Crisis on Banking Acquisitions: A Look at Shareholder Wealth

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