This paper examines competitive conditions and market structure in the banking industry, and investigates their interrelationship. Competition is measured using the non-structural Panzar-Rosse model, which assesses the elasticities of interest revenues with respect to changes in banks' input...

The current debate on the possible procyclicality of the new Basel Accord pays little attention to the procyclicality created by unsound loan loss provisioning. This paper investigates how bank provisioning behaviour is related to the business cycle, using 8,000 bank-year observations from 29...

This paper examines competitive conditions and market structure in the banking industry, and inves- tigates their interrelationship. Competition is measured using the non-structural Panzar-Rosse model, which assesses the elasticities of interest revenues with respect to changes in banks' input...

Measures of concentration and competition are of vital importance for welfare-related public policy toward market structure and conduct in the banking industry. Theoretical characteristics of ten market concentration measures are discussed and numerical examples illustrate differences and...

The proposed risk sensitive minimum requirements of the new Basel Capital Accord have raised concerns about possible (acceleration of) procyclical behaviour of banking, which might threat en macroeconomic stability. This article analyses the interaction between business cycles and banks over the...

The efficiency of European banks is crucial in the light of the current and expected increase in competition. This paper seeks to discover the level and spread of bank efficiency in Europe. In particular, it focuses on differences across countries, various sizes of banks (reflecting several...

This paper presents empirical evidence on the competitive structure in the banking industry in the EU as a whole as well as in individual EU countries. The study is based on a non-structural estimation technique to evaluate the elasticity of total interest revenues with respect to changes in...

The new Basel Capital Accord will result in more risk sensitive regulatory capital for banks. Likewise, financial conglomerates' internal models will become more important in group-wide supervision. Such models are relatively well developed for market and credit risk but for others, such as...

Bresnahan and Lau developed a model of profit maximising oligopoly banks in order to determine the degree of market power of the average bank. The equilibrium price equation includes a mark up, which is not used at all under perfect competition, partly used under oligopoly or monopolistic...

This paper provides a survey on recent and current developments in the European banking industry. Traditional banking activities have diminished in relative terms, but banks remain the predominant players in the euro area financial system. Economic and monetary integration in the EU has strongly...