IMF Working Papers

Consolidation and Market Structure in Emerging Market Banking Systems

By Gaston Gelos, Jorge Roldos

November 1, 2002

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Gaston Gelos, and Jorge Roldos. Consolidation and Market Structure in Emerging Market Banking Systems, (USA: International Monetary Fund, 2002) accessed November 23, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the evolution of market structure in emerging market banking systems during the 1990s. While significant bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associated with increased concentration as measured by standard indices. Moreover, econometric estimates based on the Panzar-Rosse (1987) methodology suggest that, overall, markets have not become less competitive in a sample of eight European and Latin American countries. Lowering barriers to entry, by doing such things as allowing increased participation of foreign banks, appears to have prevented a decline in competitive pressures associated with consolidation.

Subject: Banking, Commercial banks, Competition, Emerging and frontier financial markets, Financial institutions, Financial markets, Foreign banks, State-owned banks

Keywords: Asia and Pacific, Banco de Chile, Bank, Bank consolidation, Bank penetration, Banking, Banking SystemsConsolidation, Commercial banks, Competition, Consolidation process, Contestability, Emerging and frontier financial markets, Emerging markets, Europe, Foreign banks, HH indices, Market power, Market structure, Number, Panzar and Rosse methodology, Private bank, State-owned banks, WP

Publication Details

  • Pages:

    30

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2002/186

  • Stock No:

    WPIEA1862002

  • ISBN:

    9781451859478

  • ISSN:

    1018-5941

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