Consolidation and market structure in emerging market banking systems

This paper examines the evolution of market structure in emerging markets banking systems during the 1990s. While a significant process of bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associ...

Full description

Saved in:
Bibliographic Details
Published inEmerging markets review Vol. 5; no. 1; pp. 39 - 59
Main Authors Gelos, R.G, Roldós, Jorge
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.03.2004
Elsevier
SeriesEmerging Markets Review
Subjects
Banking
Competition
Contestability
Emerging markets
Market structure
Panzar and Rosse methodology
Competition
Market structure
Contestability
G21
Banking
Emerging markets
L51
Panzar and Rosse methodology
L13
Online AccessGet full text

Cover

More Information
Summary:This paper examines the evolution of market structure in emerging markets banking systems during the 1990s. While a significant process of bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associated with increased concentration as measured by standard indices. Moreover, econometric estimates based on the Panzar and Rosse (1987) methodology suggest that overall, markets have not become less competitive in a sample of eight European and Latin American countries. Lowering barriers to entry, such as allowing increased participation of foreign banks, appears to have prevented a decline in competitive pressures associated with consolidation.
ISSN:1566-0141
1873-6173
DOI:10.1016/j.ememar.2003.12.002