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Bank Market Structures and Performance Around the World

51 Pages Posted: 9 Jun 2011  

Andreas Dietrich

Lucerne University of Applied Sciences and Arts

Andreas Walter Mattig

University of St. Gallen

Date Written: July 1, 2010

Abstract

This paper revisits the old discussion of the applicability of structure-conduct-performance models to the banking industry. In contrast to earlier (single) country studies, we aimed at providing an overview of how it would look like, if the model indeed would be applied over time and across a non-biased selection of a multi-country study. By analyzing 105 countries, we find – in line with parts of the earlier theoretical literature – a large variance, in terms of countries in which the model actually seems to work. This leads us into looking for actual reasons that determine the applicability of the structure-conduct-performance concept and the institutional and legal environment that allow increased profitability through collusion. We find drivers for this applicability more based on the macro level than on the bank-specific level.

Keywords: market structure, performance, banking

JEL Classification: G21, L10, N20

Suggested Citation

Dietrich, Andreas and Mattig, Andreas Walter, Bank Market Structures and Performance Around the World (July 1, 2010). Available at SSRN: https://ssrn.com/abstract=1860194 or http://dx.doi.org/10.2139/ssrn.1860194

Andreas Dietrich (Contact Author)

Lucerne University of Applied Sciences and Arts ( email )

IFZ Institute of Financial Services Zug
P.O. Box 4332
Zug, CH-6304
Switzerland

Andreas Walter Mattig

University of St. Gallen ( email )

Rosenbergstrasse 52
CH-9000 St. Gallen, 9000
Switzerland

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