Estimation of the competitive conditions in the Czech banking sector
Result description
The paper uses Panzar Rosse model to estimates the level of competition of the banking industry in the Czech Republic during the period 2001-2009. We apply Panzar-Rosse model to estimate H statistic for a panel of 15 banks, which represent almost 90% ofthe market. This paper also measures and compares the degree of banking competition in two sub-periods, 2001-2005 and 2005-2009, in order to investigate development of the competitive structure of the Czech banking industry. We found that the market wasin equilibrium during most of the estimation period, which is a necessary condition for sound evaluation of the competition level. While the market can be described as perfectly competitive in 2001-2005, the intensity of competition decreased after joining the EU in 2004 and the market can be characterized as one of monopolistic competition in 2005-2009. The monopolistic competition in the Czech banking market was also revealed if the full sample 2001-2009 is considered.
Keywords
The result's identifiers
Result code in IS VaVaI
Result on the web
—
DOI - Digital Object Identifier
—
Alternative languages
Result language
angličtina
Original language name
Estimation of the competitive conditions in the Czech banking sector
Original language description
The paper uses Panzar Rosse model to estimates the level of competition of the banking industry in the Czech Republic during the period 2001-2009. We apply Panzar-Rosse model to estimate H statistic for a panel of 15 banks, which represent almost 90% ofthe market. This paper also measures and compares the degree of banking competition in two sub-periods, 2001-2005 and 2005-2009, in order to investigate development of the competitive structure of the Czech banking industry. We found that the market wasin equilibrium during most of the estimation period, which is a necessary condition for sound evaluation of the competition level. While the market can be described as perfectly competitive in 2001-2005, the intensity of competition decreased after joining the EU in 2004 and the market can be characterized as one of monopolistic competition in 2005-2009. The monopolistic competition in the Czech banking market was also revealed if the full sample 2001-2009 is considered.
Czech name
—
Czech description
—
Classification
Type
Jx - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2011
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Acta Universitatis Agriculturae et Silviculturae Mendeleianae Brunensis
ISSN
1211-8516
e-ISSN
—
Volume of the periodical
59
Issue of the periodical within the volume
2
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
8
Pages from-to
299-306
UT code for WoS article
—
EID of the result in the Scopus database
—
Basic information
Result type
Jx - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP
AH - Economics
Year of implementation
2011