Convergence of bank competition in Central and Eastern European countries: do foreign and domestic banks go hand in hand?
LAPTEACRU, Ion
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
LAPTEACRU, Ion
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
< Reduce
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Institut Léon Duguit [ILD]
Language
EN
Article de revue
This item was published in
Post-Communist Economies. 2018-04-30, vol. 30, n° 5, p. 588-616
English Abstract
Following the massive entry of foreign banks into the Central and Eastern European (CEE) banking markets, one may wonder whether their competitive behaviour differs from that of their domestic counterparts, possibly leading ...Read more >
Following the massive entry of foreign banks into the Central and Eastern European (CEE) banking markets, one may wonder whether their competitive behaviour differs from that of their domestic counterparts, possibly leading to the segmentation of these markets at the regional and national levels. We find that the competitive behaviour of foreign and domestic banks differs, with foreign banks having less market power until the recent financial crisis and more market power after this financial turmoil. Despite this difference, banks tend to behave similarly, and their market power converges to a similar level. The tendency towards similar competitive behaviour is observed at the regional and national levels and for both foreign and domestic banks, although foreign institutions that enter these markets through the acquisition of domestic banks have slightly more market power. Our findings suggest the regional integration of CEE banking markets and no segmentation between foreign and domestic institutions.Read less <
English Keywords
Central and Eastern European countries
banking
competition
convergence
banking market integration