Bank competition efficiency in Europe: A frontier approach

B-Tier
Journal: Journal of Banking & Finance
Year: 2010
Volume: 34
Issue: 8
Pages: 1808-1817

Authors (2)

Bolt, Wilko (de Nederlandsche Bank) Humphrey, David (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

There are numerous ways to indicate the degree of banking competition across countries. Antitrust authorities rely on the structure-conduct-performance paradigm while academics prefer price mark-ups (Lerner index) or correlations of input costs with output prices (H-statistic). These measures are not always strongly correlated within or across countries. Frontier efficiency analysis is used to devise an alternative indicator of competition and rank European countries by their dispersion from a "competition frontier". The frontier is determined by how well payment and other costs explain variations in loan-deposit rate spread and non-interest activity revenues. Overall, differences in competition appear to be small.

Technical Details

RePEc Handle
repec:eee:jbfina:v:34:y:2010:i:8:p:1808-1817
Journal Field
Finance
Author Count
2
Added to Database
2026-01-24