Consolidation and Market Structure in Emerging Market Banking Systems

Author/Editor:

Gaston Gelos ; Jorge Roldos

Publication Date:

November 1, 2002

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the evolution of market structure in emerging market banking systems during the 1990s. While significant bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associated with increased concentration as measured by standard indices. Moreover, econometric estimates based on the Panzar-Rosse (1987) methodology suggest that, overall, markets have not become less competitive in a sample of eight European and Latin American countries. Lowering barriers to entry, by doing such things as allowing increased participation of foreign banks, appears to have prevented a decline in competitive pressures associated with consolidation.

Series:

Working Paper No. 2002/186

Subject:

Banking Commercial banks Competition Emerging and frontier financial markets Financial institutions Financial markets Foreign banks State-owned banks

English

Publication Date:

November 1, 2002

ISBN/ISSN:

9781451859478/1018-5941

Stock No:

WPIEA1862002

Pages:

30

Please address any questions about this title to publications@imf.org