Izvorni znanstveni članak
https://doi.org/10.15179/ces.20.1.1
Banking Sector Competition in the Panzar-Rosse Framework and Net Interest Margins: An Empirical Analysis Using the General Method of Moments
Arben Mustafa
orcid.org/0000-0002-1489-2973
; University “Kadri Zeka”, Faculty of Economics, Gjilan, Republic of Kosovo
Valentin Toçi
orcid.org/0000-0003-1062-918X
; University of Prishtina “Hasan Prishtina”, Faculty of Economics, Prishtina, Republic of Kosovo
Sažetak
This paper provides empirical evidence on the determinants of net interest margins in Central, Eastern, and Southeastern European countries (CESEE) during the period 1999–2009, with a particular focus on the relationship between banking sector competition and net interest margins. Using country-level Panzar-Rosse H-statistic estimates as a measure of competition, and the General Method of Moments, it has been determined that banking sector competition had a negative impact on net interest margins. In order to check for consistency, alternative measures of competition, such as the Lerner index and the Herfindahl-Hirschman index, have also been used. The results appear consistent and suggest that higher market power is associated with higher interest margins. A number of interactions have been used to check for the impact of competition when interacted with other variables. The study also provides evidence on the impact of other bank-specific, macroeconomic, and institutional variables on net interest margins.
Ključne riječi
bank competition; net interest margins; Panzar-Rosse H-statistic; General Method of Moments
Hrčak ID:
203166
URI
Datum izdavanja:
29.6.2018.
Posjeta: 1.992 *