The impact of market power at bank level in risk-taking: The Brazilian case

Tabak, Benjamin Miranda; Gomes, Guilherme Maia Rodrigues; Medeiros, Maurício da Silva

doi:10.1016/j.irfa.2015.05.014

Cited by 57 publications

(24 citation statements)

References 63 publications

(93 reference statements)

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“…We find a negative association between bank characteristics (capitalisation, assets diversification and liquidity) and risk-monitored loan ratios. Well-capitalised banks are expected to have lower credit risk as the risk of capital loss outweighs the temptation from higher returns associated with riskier investments, in line with the finding reported in Tabak et al (2015) for Brazilian banks. Concerning the favourable impact of asset diversification on risk, the result proposes that when diversifying earning assets, banks would benefit from lower risk-monitored loan ratios.…”

Section: Risk and Competition: The Boone Indicator As The Threshold Vsupporting

confidence: 78%

The interplay between quantitative easing, risk and competition: The case of Japanese banking

Mamatzakis

2018

Financial Market

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Section: Risk and Competition: The Boone Indicator As The Threshold Vsupporting

confidence: 78%

The interplay between quantitative easing, risk and competition: The case of Japanese banking

Mamatzakis

2018

Financial Market

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“…The results for the non-seasonally-adjusted model are close to those of Tabak, Gomes, and Medeiros Júnior (2015), who used a similar database. Lucinda (2010) attempted to estimate a model without including scale variables (not reported in his paper), but argued that the estimates of the H-statistics were even greater than when scale variables were included.…”

Section: Seasonal Adjustmentsupporting

confidence: 77%

Banking competition in the Brazilian economy

Divino

Silva

2017

Nova econ.

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Resumo Códigos JEL C33; G21; L11. AbstractThis paper applies the Panzar-Rosse model to assess the level of competition in the Brazilian banking sector. The sample covers 62 banks in the period from July 1994 to February 2012. Special attention is paid to the presence of scale variables in the regression, the existence of seasonal components in the fi nancial time series, and the normalization of the price of banking inputs. The inclusion of scale variables in the model and the presence of seasonality in the data tend to erroneously indicate a competitive market structure. Contrary to the literature, in the seasonally-adjusted model without scale variables, the H-statistics indicates that banks in general and specifi c subgroups are non-competitive in the market. While large banks have high market power, public banks have intermediary market power, compatible with the various kinds of political interference in their management decisions.

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“…Silva (2014) points out that only internal agents of the organization know the marginal costs. In view of this, the scientific literature recommends estimating the transcendental logarithmic function (translog) of the total cost, given by Equation (4) (Silva, 2014;Tabak, Gomes, & Medeiros, 2015;Turk-Ariss, 2010). The translog consists of a general functional form introduced by Christensen, Jorgenson, and Lau (1973) considered flexible, with linear and quadratic terms, and can be used to test hypotheses of the firm's theory.…”

Section: The Theoretical Modelmentioning

confidence: 99%

“…In these intermediate market environments, interest rates on loans tend to be higher and those on deposits lower, when compared to those in perfect competition. In 2015, Tabak, Gomes, and Medeiros (2015) had pointed out that concentration on credit portfolios increases monitoring efficiency since it facilitates loan recovery, making the bank less susceptible to risk.…”

mentioning

confidence: 99%

Concentração e Competição no Mercado de Crédito Doméstico

Azevedo

Gartner

2020

Rev. adm. contemp.

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RESUMO Contexto: o mercado financeiro tem vivenciado acentuadas reestruturações e concentrações nas últimas décadas. À medida que os bancos expandem o escopo de suas atividades, levantam preocupações quanto ao impacto sobre a competitividade do setor. Se as características da indústria financeira, que colaboram para tornar o setor mais concentrado, podem torná-la menos competitiva, implica avaliar a relação entre concentração e concorrência. Objetivo: o objetivo geral deste estudo consiste em promover diagnóstico da organização do mercado de crédito nacional mediante cálculo e análise de indicadores de concentração e de competição, entre 2000 e 2019. Métodos: para mensurar a concentração, são utilizados os índices de Herfindahl-Hirschman e a Razão de Concentração dos Cinco Maiores. O grau de competição é estimado via modelo econométrico de Lerner aplicado a dados dispostos em um painel com informações contábeis-financeiras de instituições financeiras. Resultados: os resultados sugerem que embora a concentração tenha se elevado no recorte temporal considerado, a competitividade não se deteriorou, reforçando o argumento de referências seminais de que concentração não necessariamente prejudica competição. Conclusão: diante de ausência de consenso acadêmico, este trabalho elucida a relação entre concentração e competitividade. Ainda, ganha relevância ao apontar o papel da regulação e das cooperativas de crédito no aumento da concorrência recente. O trabalho torna-se, assim, passível de apoiar políticas capazes de promover a contestabilidade, como iniciativas que flexibilizem restrições à entrada de instituições não bancárias e de empresas de tecnologia financeira.

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The impact of market power at bank level in risk-taking: The Brazilian case

Cited by 57 publications

References 63 publications

The interplay between quantitative easing, risk and competition: The case of Japanese banking

The interplay between quantitative easing, risk and competition: The case of Japanese banking

Banking competition in the Brazilian economy

Concentração e Competição no Mercado de Crédito Doméstico

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