Estimation of the relationship between competition and concentration in the Czech banking sector
Result description
This paper examines the relationship between competition and concentration in the Czech banking industry within the period 2001-2011. The level of competition and concentration was estimated in the Czech banking sector. The degree of competition was assessed applying the Bresnahan model and for measuring the degree of concentration the concentration ratio and the Herfindahl-Hirschman index was employed. The relationship between competition and concentration using the Johansen cointegration test was examined. In the paper the cointegration analysis found the negative relationship between competition and concentration in the Czech credit market as well as in the deposit market. This finding confirms results that competition increased and concentration decreased during the analyzed period. Thus, the decrease of the concentration will contribute to competitive conditions in the credit market and market of clients' deposits.
Keywords
banking sectorcredit marketdeposit marketcompetitionBresnahan modelconcentrationJohansen cointegration test
The result's identifiers
Result code in IS VaVaI
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Estimation of the relationship between competition and concentration in the Czech banking sector
Original language description
This paper examines the relationship between competition and concentration in the Czech banking industry within the period 2001-2011. The level of competition and concentration was estimated in the Czech banking sector. The degree of competition was assessed applying the Bresnahan model and for measuring the degree of concentration the concentration ratio and the Herfindahl-Hirschman index was employed. The relationship between competition and concentration using the Johansen cointegration test was examined. In the paper the cointegration analysis found the negative relationship between competition and concentration in the Czech credit market as well as in the deposit market. This finding confirms results that competition increased and concentration decreased during the analyzed period. Thus, the decrease of the concentration will contribute to competitive conditions in the credit market and market of clients' deposits.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AE - Management, administration and clerical work
OECD FORD branch
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Result continuities
Project
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2013
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of the 6th International Scientific Conference Finance and the performance of firms in science, education, and practice
ISBN
978-80-7454-246-6
ISSN
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e-ISSN
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Number of pages
12
Pages from-to
621-632
Publisher name
Univerzita Tomáše Bati ve Zlíně, Fakulta managementu a ekonomiky
Place of publication
Zlín
Event location
Zlín
Event date
Apr 25, 2013
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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Basic information
Result type
D - Article in proceedings
CEP
AE - Management, administration and clerical work
Year of implementation
2013