The competition of the European banking industry: Panzar and Rosse model

• Main Authors: Kun-min Chiang, 江坤珉
• Other Authors: Shun-Chiao Chang
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/49976700236273402672

碩士 === 國立臺灣科技大學 === 企業管理系 === 100 === This paper mainly measures the competitive landscape of the banking industry in four regions of Europe and four single country’s banking sector during the period of 2005-2009. We focus on the impact of the financial crisis on the market structures, so the sample period is during 2005-2007 and 2008-2009, by the financial crisis cut-off point in 2008. In the empirical method we apply to the new empirical industrial organization, the Panzar–Rosse model, to estimate bank competitive structure. The empirical results reveal the monopolistic competition of the banking industry of four European regions countries before and after the financial crisis, but the degree of competition in the operation of the European Union has changed little; on the other hands, the competitiveness of the four European countries is monopolistic competition before the financial crisis and the country’s industrial structure has significant differences after the crisis. Finally, it is evidence that the effects of the financial crisis have seriously affected the structure of banking and banking revenue by macro-economic situation.