Does bank competition reduce cost of credit? Cross-country evidence from Europe

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F17%3A00478085" target="_blank" >RIV/67985998:_____/17:00478085 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/00216208:11230/17:10363655

Výsledek na webu

<a href="http://dx.doi.org/10.1016/j.jbankfin.2017.06.014" target="_blank" >http://dx.doi.org/10.1016/j.jbankfin.2017.06.014</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.jbankfin.2017.06.014" target="_blank" >10.1016/j.jbankfin.2017.06.014</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Does bank competition reduce cost of credit? Cross-country evidence from Europe

Popis výsledku v původním jazyce

Despite the extensive debate on the effects of bank competition on economic welfare and growth, only a handful of single-country studies deal with the impact of bank competition on the cost of credit. We contribute to the literature by investigating the impact of bank competition on the cost of credit in a cross-country setting. Using a panel of firms from 20 European countries covering the period 2001–2011, we consider a broad set of measures of bank competition, including two structural measures (Herfindahl–Hirschman index and CR5), and two non-structural indicators (Lerner index and H-statistic). We find that bank competition increases the cost of credit and observe that the positive influence of bank competition is stronger for smaller companies. Our findings accord with the information hypothesis, whereby a lack of competition incentivizes banks to invest in soft information and conversely increased competition raises the cost of credit. This positive impact of bank competition is however influenced by the institutional and economic framework, as well as by the crisis.

Název v anglickém jazyce

Does bank competition reduce cost of credit? Cross-country evidence from Europe

Popis výsledku anglicky

Despite the extensive debate on the effects of bank competition on economic welfare and growth, only a handful of single-country studies deal with the impact of bank competition on the cost of credit. We contribute to the literature by investigating the impact of bank competition on the cost of credit in a cross-country setting. Using a panel of firms from 20 European countries covering the period 2001–2011, we consider a broad set of measures of bank competition, including two structural measures (Herfindahl–Hirschman index and CR5), and two non-structural indicators (Lerner index and H-statistic). We find that bank competition increases the cost of credit and observe that the positive influence of bank competition is stronger for smaller companies. Our findings accord with the information hypothesis, whereby a lack of competition incentivizes banks to invest in soft information and conversely increased competition raises the cost of credit. This positive impact of bank competition is however influenced by the institutional and economic framework, as well as by the crisis.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

<a href="/cs/project/GA14-31783S" target="_blank" >GA14-31783S: Analýza chování firem v měnícím se ekonomickém prostředí</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Journal of Banking & Finance

ISSN

0378-4266

e-ISSN

—

Svazek periodika

83

Číslo periodika v rámci svazku

October

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

17

Strana od-do

104-120

Kód UT WoS článku

000411305200007

EID výsledku v databázi Scopus

2-s2.0-85025817481