Colombian bank efficiency and the role of market structure

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dc.audiencePolicymakerseng
dc.audienceResearcherseng
dc.audienceStudentseng
dc.audienceTeacherseng
dc.coverage.sucursalBogotáeng
dc.creatorFernández-Moreno, Diana Lucíaeng
dc.creatorEstrada, Dairo Ayiberspa
dc.date.accessioned2013-06-01T08:30:10Zeng
dc.date.available2015-12-06T08:30:10Zeng
dc.date.available2015-12-14T08:30:10Zeng
dc.date.available2017-10-24T08:30:10Zeng
dc.date.created2013-06-01eng
dc.date.issued2013-06eng
dc.description.abstractColombia’s financial system has undertaken major changes during the last decade, with new regulatory regimes being implemented, as well as a significant expansion of financial services. Nevertheless, the recent literature has yet to analyze this new epoch for banking institutions under an efficiency framework. Taking into account the availability of new information and the methodological advances of recent years, our purpose is to study the evolution of bank efficiency during the past few years, as well as to evaluate the influence of some market structure variables on the latter. We find evidence, both under SFA and Order-m, supporting an increase in efficiency over time. Moreover, relating the latter with market structure variables suggests that there is a positive relationship between market power and efficiency; this occurs due to product differentiation, which allows banks to gain in efficiency provided they don’t set excessive credit prices. Nonetheless, there is an open debate concerning the behavior of banks with the highest market shares, since the negative relation between market concentration and efficiency advocates for a "quiet life form", where banks don’t have incentives to fully minimize costs. Additional to these results, we provide evidence of potential impacts that mergers and credit specialization may have on efficiency.eng
dc.format.extent28 páginas : gráficas, tablaseng
dc.format.mimetypePDFeng
dc.identifier.handlehttps://hdl.handle.net/20.500.12134/2069spa
dc.identifier.urihttps://repositorio.banrep.gov.co/handle/20.500.12134/2069eng
dc.language.isoengeng
dc.publisherBanco de la República de Colombiaeng
dc.relation.doihttps://doi.org/10.32468/tef.76spa
dc.relation.ispartofDocumentos de Trabajoeng
dc.relation.ispartofseriesTemas de Estabilidad Financieraeng
dc.relation.isversionofTemas de Estabilidad Financiera ; No. 76spa
dc.relation.numbertef 76eng
dc.relation.repechttps://ideas.repec.org/p/bdr/temest/076.htmlspa
dc.rights.accessRightsOpen Accesseng
dc.rights.ccAtribucion-NoComercial-CompartirIgual CC BY-NC-SA 4.0eng
dc.rights.disclaimerLas opiniones contenidas en el presente documento son responsabilidad exclusiva de los autores y no comprometen al Banco de la República ni a su Junta Directiva.spa
dc.rights.spaAcceso abiertospa
dc.rights.urihttps://creativecommons.org/licenses/by-nc-sa/4.0/eng
dc.source.bibliographicCitationAigner, D., Lovell, C. & Schmidt (1977), "Formulation and estimation of stochastic frontier production function models", Journal of Econometrics (No. 6, pp 21-37).eng
dc.source.bibliographicCitationApergis, N. & Alevizopoulou, E. (2011), "Bank efficiency: Evidence from a panel of european banks", Panoeconomicus (No. 3. pp. 329-341).eng
dc.source.bibliographicCitationBerger, A. & DeYoung, R. (1997), "Problem loans and cost efficiency in commercial banks", Journal of Banking and Finance (No. 21, 849- 870).eng
dc.source.handleRepecRePEc:bdr:temest:076spa
dc.subjectEficiencia bancariaeng
dc.subjectConcentracióneng
dc.subjectPoder de mercadoeng
dc.subjectAnálisis estocástico de fronteraeng
dc.subjectOrdeneng
dc.subject.jelC14 - Semiparametric and Nonparametric Methods: Generaleng
dc.subject.jelD40 - Market Structure, Pricing, and Design: Generaleng
dc.subject.jelD61 - Allocative Efficiency; Cost-Benefit Analysiseng
dc.subject.jelG21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgageseng
dc.subject.jelspaC14 - Métodos semiparamétricos y no paramétricos: generalidadeseng
dc.subject.jelspaD40 - Estructura de mercado, formación de precios y diseño: Generalidadeseng
dc.subject.jelspaD61 - Eficiencia en la asignación; Análisis coste-beneficioeng
dc.subject.jelspaG21 - Bancos; Instituciones de depósito; Instituciones Microfinancieras; Hipotecaseng
dc.subject.keywordBank efficiencyeng
dc.subject.keywordConcentrationeng
dc.subject.keywordMarket powereng
dc.subject.keywordStochastic frontier analysiseng
dc.subject.keywordOrder-meng
dc.subject.lembInstituciones financieras -- Colombiaeng
dc.subject.lembMercado financiero -- Colombiaeng
dc.subject.lembServicios financieros -- Colombiaeng
dc.subject.lembCrédito -- Colombiaeng
dc.subject.lembPréstamos bancarios -- Colombiaeng
dc.subject.lembFusiones bancarias -- Colombiaeng
dc.titleColombian bank efficiency and the role of market structureeng
dc.typeWorking Papereng
dc.type.hasversionPublished Versioneng
dc.type.spaDocumentos de trabajoeng

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