Competition and concentration in the Polish banking sector after the global financial crisis of 2008
Article Sidebar
Published:
Oct 1, 2018
Keywords:
competition, concentration, mergers and acquisitions, market structure
Main Article Content
Abstract
The aim of this paper is to investigate the level of competition in the Polish banking sector. The analysis of concentration ratios and competition measures showed that as a result of the consolidation process, the level of competition in the Polish banking sector decreased. Moreover, it was pointed out that despite the generally favorable situation, the regulatory requirements observed in recent years are a significant challenge for banks in order to maintain their competitive position on the market. In addition, it seems that the greatest challenge now is the inability to reconcile pressure on short-term profits along with long-term development strategies.
Downloads
Download data is not yet available.
Article Details
How to Cite
Pawłowska , M. . (2018). Competition and concentration in the Polish banking sector after the global financial crisis of 2008. Kwartalnik Kolegium Ekonomiczno-Społecznego. Studia I Prace, (4 (36), 163–181. Retrieved from https://econjournals.sgh.waw.pl/kwes/article/view/1319
Section
Articles
Autor (Autorzy) artykułu oświadcza, że przesłane opracowanie nie narusza praw autorskich osób trzecich. Wyraża zgodę na poddanie artykułu procedurze recenzji oraz dokonanie zmian redakcyjnych. Przenosi nieodpłatnie na Oficynę Wydawniczą SGH autorskie prawa majątkowe do utworu na polach eksploatacji wymienionych w art. 50 Ustawy z dnia 4 lutego 1994 r. o prawie autorskim i prawach pokrewnych – pod warunkiem, że praca została zaakceptowana do publikacji i opublikowana.
Oficyna Wydawnicza SGH posiada autorskie prawa majątkowe do wszystkich treści czasopisma. Zamieszczenie tekstu artykuły w repozytorium, na stronie domowej autora lub na innej stronie jest dozwolone o ile nie wiąże się z pozyskiwaniem korzyści majątkowych, a tekst wyposażony będzie w informacje źródłowe (w tym również tytuł, rok, numer i adres internetowy czasopisma).
Osoby zainteresowane komercyjnym wykorzystaniem zawartości czasopisma proszone są o kontakt z Redakcją.
References
1. Bain J. P., Relation of profit rate to industry concentration: American manufacturing 1936–40, “Quarterly Journal of Economics” 1951, Vol. 65, pp. 293–324.
2. Bikker J. A., Spierdijk L., Handbook of competion in banking and finance, DNB Working Paper, Edward Elgar Publishing Limited, 2017.
3. Boone J., Competition, CEPR DP 2636, December 2000.
4. Boone J., A new way to measure competition, “Economic Journal” 2008, Vol. 118, pp. 1245–1261.
5. Cetorelli N., Real Effects of Bank Competition, “Journal of Money, Credit and Banking” 2004, Vol. 36, No. 3 (June 2004, Part 2), The Ohio State University Press, pp. 544–558.
6. Claessens P., Laeven L., What drives bank competition? Same international evidence, “Journal of Money, Credit, and Banking” 2004, Vol. 36, No. 3 (June 2004, Part 2), The Ohio State University Press, pp. 564–583.
7. Clerides S., Manthos D. D., Kokas S., A new data set on bank competition in national banking markets, Working Paper 08–2013, University of Cyprus.
8. Degryse H., Kim M., Ongena S., Microeconometrics of Banking: Methods, Applications and Results, Oxford University Press, 2009.
9. Demsetz H., Industry structure, market rivalry, and public policy, “Journal of Law and Economics” 1973, Vol. 16, pp. 1–9.
10. Freixas X., Rochet J.-Ch., Microeconomics of Banking, MIT Press, Cambridge–London, 2008.
11. Gelos R. G., Roldos J. Consolidation and Market structure in Emerging Market Banking Systems, 2002 IMF Working Paper, WP/02/186.
12. Goddard J., Wilson J. O. S., Competition in banking: A disequilibrium approach, “Journal of Banking & Finance” 2009, Vol. 33, No. 12, pp. 2282–2292.
13. Hempell H., Testing for Competition among German Banks. Economic Research Centre, Deutsche Bundesbank, Discussion Paper 04/02, 2002.
14. Hicks J., The Theory of Monopoly, “Econometrica” 1935, Vol. 3, pp. 1–20.
15. Kotsofana T. V., Stazhkova P. S., Comparative analysis of the use of concentration indicators on the example of banking sector of RF, Vestnik of Sankt-Petersburg State University. “Series Economics” 2011, Vol. 4, pp. 30–40 (version available in Russian).
16. Lapteacru, I., Do more competitive banks have less market power? The evidence from Central and Eastern Europe. “Journal of International Money and Finance” 2014, Vol. 46, pp. 41–60.
17. La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R., Investor Protection and Corporate Governance, “Journal of Financial Economics” 2000, Vol. 58, pp. 3–27.
18. Linda R., Methodology of concentration analysis applied to the study of industries and markets, Commission of the European Communities, Brussels 1976.
19. Leroy A., Lucotte Y., Is there a competition-stability trade-off in European banking? “Journal of International Financial Markets, Institutions and Money” January 2017, Vol. 46, pp. 199–215.
20. Lerner A., The concept of monopoly and the measurement of monopoly power, “Review of Economic Studies” 1934, Vol. 1, Iss. 3, pp. 157–175.
21. Laeven L., Ratnovski L., H. Tong, Bank size, capital, and systemic risk: Some international evidence, “Journal of Banking & Finance” 2016, 69, pp. 25–34.
22. Leuvensteijn M., Bikker J. A., Rixtel A., Sørensen C. K., A new approach to measuring competition in the loan markets of the euro area, EBC Working Paper Series June 2007, Vol. 768.
23. KNF, Raport o Sytuacji banków w 2008 roku, Warszawa 2009.
24. KNF, Raport o Sytuacji banków w 2013 roku, Warszawa 2014.
25. KNF, Raport o Sytuacji banków w 2014 roku, Warszawa 2015.
26. KNF, Raport o Sytuacji banków w 2015 roku, Warszawa 2016.
27. KNF, Raport o Sytuacji banków w 2016 roku, Warszawa 2017.
28. KNF, Raport o Sytuacji banków w 2017 roku, Warszawa 2018.
29. Martin S., Industrial Economics, Economic Analysis and Public Policy, Macmillan Publishing Company, New York, Collier Macmillan Publishers, London 1989.
30. Miklaszewska E., Mikołajczyk K., Pawłowska M. Post-crisis financial architecture in Central and East European Banks, “Gospodarka Narodowa” 2013, Vol. 7–8, SGH Warsaw School of Economics, Warszawa, pp. 63–85.
31. Panzar J. C., Rosse J. N., Testing for “monopoly” equilibrium, “Journal of Industrial Economics” 1987, Vol. 35, pp. 443–456.
32. Pawłowska M., Konkurencja w sektorze bankowym. Teoria i wyniki empiryczne, C. H. Beck, Warszawa 2014.
33. Ratnovski L., Competition Policy for Modern Banks, IMF Working Paper, WP/13/126, Washington, D. C. 2013.
34. Schoenmaker D., Wagner W., The Impact of Cross-Border Banking on Financial Stability, Discussion Paper, TI 11–054 DSF 18, 2011, Duisenberg School of Finance, Tinbergen Institute.
35. Smirlock M., Relationship between concentration and profitability in banking, “Journal of Money, Credit and Banking” 1985, Vol. 17 (1), pp. 69−83.
36. Vieves X., Competition and stability in banking, the role of regulation and competition policy, “CEPR” August 2016, No. 50.
37. Yildirim H. P., Philippatos G. C., Competition and Contestability in Central and Eastern European Banking Markets, “Managerial Finance” 2007, Vol. 33, No. 3, pp. 195–209.
38. Weill L., Bank competition in the EU: How has it evolved? “Journal of International Financial Markets” 2013, Vol. 26, pp. 100–112.
39. World Bank, Rethinking the Role of the State in Finance, Global Financial Development Report 2013, Washington, D. C.
40. Zaleska M., Nadzór Mikroostrożnościowy, [in:] M. Zaleska (Ed.), Świat bankowości, Difin, Warszawa 2018.
Legal acts
1. Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as well as Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.
2. Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market (Payment Services Directive 2).
3. Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU.
2. Bikker J. A., Spierdijk L., Handbook of competion in banking and finance, DNB Working Paper, Edward Elgar Publishing Limited, 2017.
3. Boone J., Competition, CEPR DP 2636, December 2000.
4. Boone J., A new way to measure competition, “Economic Journal” 2008, Vol. 118, pp. 1245–1261.
5. Cetorelli N., Real Effects of Bank Competition, “Journal of Money, Credit and Banking” 2004, Vol. 36, No. 3 (June 2004, Part 2), The Ohio State University Press, pp. 544–558.
6. Claessens P., Laeven L., What drives bank competition? Same international evidence, “Journal of Money, Credit, and Banking” 2004, Vol. 36, No. 3 (June 2004, Part 2), The Ohio State University Press, pp. 564–583.
7. Clerides S., Manthos D. D., Kokas S., A new data set on bank competition in national banking markets, Working Paper 08–2013, University of Cyprus.
8. Degryse H., Kim M., Ongena S., Microeconometrics of Banking: Methods, Applications and Results, Oxford University Press, 2009.
9. Demsetz H., Industry structure, market rivalry, and public policy, “Journal of Law and Economics” 1973, Vol. 16, pp. 1–9.
10. Freixas X., Rochet J.-Ch., Microeconomics of Banking, MIT Press, Cambridge–London, 2008.
11. Gelos R. G., Roldos J. Consolidation and Market structure in Emerging Market Banking Systems, 2002 IMF Working Paper, WP/02/186.
12. Goddard J., Wilson J. O. S., Competition in banking: A disequilibrium approach, “Journal of Banking & Finance” 2009, Vol. 33, No. 12, pp. 2282–2292.
13. Hempell H., Testing for Competition among German Banks. Economic Research Centre, Deutsche Bundesbank, Discussion Paper 04/02, 2002.
14. Hicks J., The Theory of Monopoly, “Econometrica” 1935, Vol. 3, pp. 1–20.
15. Kotsofana T. V., Stazhkova P. S., Comparative analysis of the use of concentration indicators on the example of banking sector of RF, Vestnik of Sankt-Petersburg State University. “Series Economics” 2011, Vol. 4, pp. 30–40 (version available in Russian).
16. Lapteacru, I., Do more competitive banks have less market power? The evidence from Central and Eastern Europe. “Journal of International Money and Finance” 2014, Vol. 46, pp. 41–60.
17. La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R., Investor Protection and Corporate Governance, “Journal of Financial Economics” 2000, Vol. 58, pp. 3–27.
18. Linda R., Methodology of concentration analysis applied to the study of industries and markets, Commission of the European Communities, Brussels 1976.
19. Leroy A., Lucotte Y., Is there a competition-stability trade-off in European banking? “Journal of International Financial Markets, Institutions and Money” January 2017, Vol. 46, pp. 199–215.
20. Lerner A., The concept of monopoly and the measurement of monopoly power, “Review of Economic Studies” 1934, Vol. 1, Iss. 3, pp. 157–175.
21. Laeven L., Ratnovski L., H. Tong, Bank size, capital, and systemic risk: Some international evidence, “Journal of Banking & Finance” 2016, 69, pp. 25–34.
22. Leuvensteijn M., Bikker J. A., Rixtel A., Sørensen C. K., A new approach to measuring competition in the loan markets of the euro area, EBC Working Paper Series June 2007, Vol. 768.
23. KNF, Raport o Sytuacji banków w 2008 roku, Warszawa 2009.
24. KNF, Raport o Sytuacji banków w 2013 roku, Warszawa 2014.
25. KNF, Raport o Sytuacji banków w 2014 roku, Warszawa 2015.
26. KNF, Raport o Sytuacji banków w 2015 roku, Warszawa 2016.
27. KNF, Raport o Sytuacji banków w 2016 roku, Warszawa 2017.
28. KNF, Raport o Sytuacji banków w 2017 roku, Warszawa 2018.
29. Martin S., Industrial Economics, Economic Analysis and Public Policy, Macmillan Publishing Company, New York, Collier Macmillan Publishers, London 1989.
30. Miklaszewska E., Mikołajczyk K., Pawłowska M. Post-crisis financial architecture in Central and East European Banks, “Gospodarka Narodowa” 2013, Vol. 7–8, SGH Warsaw School of Economics, Warszawa, pp. 63–85.
31. Panzar J. C., Rosse J. N., Testing for “monopoly” equilibrium, “Journal of Industrial Economics” 1987, Vol. 35, pp. 443–456.
32. Pawłowska M., Konkurencja w sektorze bankowym. Teoria i wyniki empiryczne, C. H. Beck, Warszawa 2014.
33. Ratnovski L., Competition Policy for Modern Banks, IMF Working Paper, WP/13/126, Washington, D. C. 2013.
34. Schoenmaker D., Wagner W., The Impact of Cross-Border Banking on Financial Stability, Discussion Paper, TI 11–054 DSF 18, 2011, Duisenberg School of Finance, Tinbergen Institute.
35. Smirlock M., Relationship between concentration and profitability in banking, “Journal of Money, Credit and Banking” 1985, Vol. 17 (1), pp. 69−83.
36. Vieves X., Competition and stability in banking, the role of regulation and competition policy, “CEPR” August 2016, No. 50.
37. Yildirim H. P., Philippatos G. C., Competition and Contestability in Central and Eastern European Banking Markets, “Managerial Finance” 2007, Vol. 33, No. 3, pp. 195–209.
38. Weill L., Bank competition in the EU: How has it evolved? “Journal of International Financial Markets” 2013, Vol. 26, pp. 100–112.
39. World Bank, Rethinking the Role of the State in Finance, Global Financial Development Report 2013, Washington, D. C.
40. Zaleska M., Nadzór Mikroostrożnościowy, [in:] M. Zaleska (Ed.), Świat bankowości, Difin, Warszawa 2018.
Legal acts
1. Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as well as Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.
2. Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market (Payment Services Directive 2).
3. Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU.