Banking Sector Competition in the Panzar-Rosse Framework and Net Interest Margins: An Empirical Analysis Using the General Method of Moments

Croatian Economic Survey

Valentin Toçi¹  Arben Mustafa² 

[1] University of Prishtina “Hasan Prishtina”, Faculty of Economics, Prishtina, Republic of Kosovo;University “Kadri Zeka”, Faculty of Economics, Gjilan, Republic of Kosovo;

关键词: bank competition;    net interest margins;    Panzar-Rosse H-statistic;    General Method of Moments;   

DOI  :  

来源: DOAJ

【 摘 要 】

This paper provides empirical evidence on the determinants of net interest margins in Central, Eastern, and Southeastern European countries (CESEE) during the period 1999–2009, with a particular focus on the relationship between banking sector competition and net interest margins. Using countrylevel Panzar-Rosse H-statistic estimates as a measure of competition, and the General Method of Moments, it has been determined that banking sector competition had a negative impact on net interest margins. In order to check for consistency, alternative measures of competition, such as the Lerner index and the Herfindahl-Hirschman index, have also been used. The results appear consistent and suggest that higher market power is associated with higher interest margins. A number of interactions have been used to check for the impact of competition when interacted with other variables. The study also provides evidence on the impact of other bank-specific, macroeconomic, and institutional variables on net interest margins.

【 授权许可】

Unknown