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Relationship lending and competition: Higher switching cost does not necessarily imply greater relationship benefits
Vesala, Timo - Suomen Pankki - 2005
This paper studies relationship lending in a framework where the cost of switching banks measures the degree of banking competition. The relationship lender’s (insider bank’s) informational advantage creates a lock-in effect, which is at its height when the switching cost is infinitesimal....
Persistent link: https://www.econbiz.de/10005190762
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Inferring market power from retail deposit interest rates in the euro area
Vajanne, Laura - Suomen Pankki - 2009
This paper tests for the existence of market power in banking, using data on demand deposit rates of households and corresponding market rates in five euro area countries. An implicit measure for market power is based on a partial adjustment model that also allows for an asymmetric response of...
Persistent link: https://www.econbiz.de/10008509436
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Market power and merger simulation in retail banking
Molnár, József - Suomen Pankki - 2008
This paper tests market power in the banking industry. Price-cost margins predicted by different oligopoly models are calculated using discrete-choice demand estimates of own-price and cross-price elasticities. These predicted price-cost margins are then compared with price-cost margins computed...
Persistent link: https://www.econbiz.de/10005648871
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Developing the Interbank Payment System. Efficiency of Public versus Private Investments
Kauko, Karlo - Suomen Pankki - 1998
In this paper a game theoretic duopoly model is developed to analyse the development of an interbank payment system. There are two competing banks in the model, and payment services offered to the public are among their main products. The customer of the larger bank uses mainly intrabank payment...
Persistent link: https://www.econbiz.de/10005648876
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The adverse selection problem in imperfectly competitive credit markets
Mälkönen, Ville; Vesala, Timo - Suomen Pankki - 2006
We study the adverse selection problem in imperfectly competitive credit markets and illustrate the circumstances where a separating equilibrium emerges, even without collateral. The borrowers are heterogeneous in their preferences concerning the banks. Separation obtains in market segments...
Persistent link: https://www.econbiz.de/10005648893
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Effects of moral hazard and monitoring on monetary policy transmission
Topi, Jukka - Suomen Pankki - 2003
This study discusses the effects of financial intermediation, banks’ moral hazard and monitoring on monetary policy … transmission in a simple model where borrowers are dependent on loans granted by banks with superior monitoring skills. As distinct … for their special role in the monetary transmission. Instead, we focus on banks’ role in monitoring their loan customers …
Persistent link: https://www.econbiz.de/10008774225
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Shadow banking : financial intermediation beyond banks
Adrian, Tobias; Chrétien, Edouard; Chui, Michael; … - Shadow Banking: Financial Intermediation beyond Banks …; … - 2018
Persistent link: https://www.econbiz.de/10011790739
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Technological Transformation and Retail Banking Competition: Implications and Measurement
Vesala, Jukka - Suomen Pankki - 2000
The study analyses the effects on banking competition of the changes in banking delivery and information collection technologies and of the rivalry from outside the traditional banking sector. Key implications for monetary, regulatory and competition policies are also addressed. <p> Evidence is...</p>
Persistent link: https://www.econbiz.de/10008774226
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Links between securities settlement systems: An oligopoly theoretic approach
Kauko, Karlo - Suomen Pankki - 2002
This paper presents a duopoly model of the securities settlement industry. Because pooling a large amount of payments can help in using liquidity efficiently, issuers prefer systems where a large number of securities are issued. If the central securities depositories establish a mutual link that...
Persistent link: https://www.econbiz.de/10005771144
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Do markup dynamics reflect fundamentals or changes in conduct?
Juselius, Mikael; Kim, Moshe; Ringbom, Staffan - Suomen Pankki - 2009
Persistent shifts in equilibria are likely to arise in oligopolistic markets and may be detrimental to the measurement of conduct, related markups and intensity of competition. We develop a cointegrated VAR (vector autoregression) based approach to detect long-run changes in conduct when data...
Persistent link: https://www.econbiz.de/10004979444