A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan
This paper proposes a framework to analyze competition in the banking sector using Jordan as an example. In particular, the paper pursues a multi-pronged approach to analyze competition including (i) an examination of the extent to which the market...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101213102840 http://hdl.handle.net/10986/3982 |
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okr-10986-39822021-04-23T14:02:14Z A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan Demirguc-Kunt, Asli Martínez Pería, María Soledad AFFILIATES ASSET RATIO AUDITING AUDITORS AUDITS BALANCE SHEET BANK ACTIVITIES BANK ASSETS BANK BORROWERS BANK COMPETITION BANK ENTRY BANK INTEREST MARGINS BANK LOANS BANK OPERATIONS BANK POLICY BANK SPREADS BANKING INDUSTRY BANKING MARKET BANKING REGULATIONS BANKING SECTOR BANKING SECTORS BANKING SYSTEM BANKS BARRIERS TO ENTRY BOND BONDS CAPITAL ADEQUACY CAPITAL ASSET CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKING CONSOLIDATION CONTESTABILITY CURRENCY DEPOSIT DEPOSIT RATES DEPOSITS DEREGULATION DERIVATIVE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DOMESTIC BANK DOMESTIC BANKS EMERGING MARKET EMERGING MARKET COUNTRIES EXIT FRAMEWORK EXTERNAL AUDITORS FAILURE RESOLUTION FINANCIAL COSTS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR ASSESSMENT FINANCIAL SERVICES FINANCIAL STABILITY FOREIGN BANK FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN PENETRATION FRAUD GLOBAL FINANCIAL SYSTEM GOVERNMENT BANK GOVERNMENT BANKS HOLDING HOLDING COMPANIES INCUMBENT BANKS INFLATION INFLATION RATE INPUT PRICE INPUT PRICES INSTITUTIONAL DEVELOPMENT INSURANCE INSURANCE ACTIVITIES INSURANCES INTEREST EXPENSES INTEREST INCOME INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL AUDITING STANDARDS INTERNATIONAL BANK ISSUANCE JOINT VENTURE JUDICIAL ENVIRONMENT LACK OF COMPETITION LAWS LENDING INSTRUMENTS LEVY LIBERALIZATION LIQUIDATION LIQUIDITY LOAN MACROECONOMIC CONDITIONS MARGINAL COSTS MARKET POWER MARKET STRUCTURE MONEY MARKET MONOPOLY MORTGAGE MORTGAGE LOANS MUTUAL FUND MUTUAL FUND INDUSTRY OUTPUT OUTPUTS OVERDRAFT OVERDRAFT FACILITIES OVERDRAFTS PERSONNEL EXPENSES PRIME RATE PRIVATE SECTOR DEVELOPMENT PROFITABILITY PROPERTY RIGHTS REAL ESTATE REAL ESTATE INVESTMENT REGULATORS REGULATORY FRAMEWORK RETAIL RETURN ON ASSETS SECURITIES SHARE OF ASSETS SHAREHOLDERS SOURCE OF FUNDS SOURCES OF FUNDS SPREAD SUBSIDIARIES SUBSIDIARY SUPERVISION OF BANKS SUPERVISORY AGENCY TAX TAX RETURN TAXATION TIME DEPOSITS TRACK RECORD TRANSPARENCY UNION WORLD DEVELOPMENT INDICATORS This paper proposes a framework to analyze competition in the banking sector using Jordan as an example. In particular, the paper pursues a multi-pronged approach to analyze competition including (i) an examination of the extent to which the market is contestable (that is, has low barriers to bank entry and exit), (b) an evaluation of the behavior of bank spreads, and (iii) an assessment of non-structural and direct measures of bank competition such as the H-statistic and the Lerner Index. This approach provides a more comprehensive framework to examine competition in the banking sector, compared with the commonly used alternative of looking only at bank concentration figures. In the case of Jordan, the analysis indicates that although concentration has declined, competition in the country is low and has decreased over time. 2012-03-19T18:43:19Z 2012-03-19T18:43:19Z 2010-12-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101213102840 http://hdl.handle.net/10986/3982 English Policy Research working paper ; no. WPS 5499 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Middle East and North Africa Jordan |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AFFILIATES ASSET RATIO AUDITING AUDITORS AUDITS BALANCE SHEET BANK ACTIVITIES BANK ASSETS BANK BORROWERS BANK COMPETITION BANK ENTRY BANK INTEREST MARGINS BANK LOANS BANK OPERATIONS BANK POLICY BANK SPREADS BANKING INDUSTRY BANKING MARKET BANKING REGULATIONS BANKING SECTOR BANKING SECTORS BANKING SYSTEM BANKS BARRIERS TO ENTRY BOND BONDS CAPITAL ADEQUACY CAPITAL ASSET CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKING CONSOLIDATION CONTESTABILITY CURRENCY DEPOSIT DEPOSIT RATES DEPOSITS DEREGULATION DERIVATIVE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DOMESTIC BANK DOMESTIC BANKS EMERGING MARKET EMERGING MARKET COUNTRIES EXIT FRAMEWORK EXTERNAL AUDITORS FAILURE RESOLUTION FINANCIAL COSTS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR ASSESSMENT FINANCIAL SERVICES FINANCIAL STABILITY FOREIGN BANK FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN PENETRATION FRAUD GLOBAL FINANCIAL SYSTEM GOVERNMENT BANK GOVERNMENT BANKS HOLDING HOLDING COMPANIES INCUMBENT BANKS INFLATION INFLATION RATE INPUT PRICE INPUT PRICES INSTITUTIONAL DEVELOPMENT INSURANCE INSURANCE ACTIVITIES INSURANCES INTEREST EXPENSES INTEREST INCOME INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL AUDITING STANDARDS INTERNATIONAL BANK ISSUANCE JOINT VENTURE JUDICIAL ENVIRONMENT LACK OF COMPETITION LAWS LENDING INSTRUMENTS LEVY LIBERALIZATION LIQUIDATION LIQUIDITY LOAN MACROECONOMIC CONDITIONS MARGINAL COSTS MARKET POWER MARKET STRUCTURE MONEY MARKET MONOPOLY MORTGAGE MORTGAGE LOANS MUTUAL FUND MUTUAL FUND INDUSTRY OUTPUT OUTPUTS OVERDRAFT OVERDRAFT FACILITIES OVERDRAFTS PERSONNEL EXPENSES PRIME RATE PRIVATE SECTOR DEVELOPMENT PROFITABILITY PROPERTY RIGHTS REAL ESTATE REAL ESTATE INVESTMENT REGULATORS REGULATORY FRAMEWORK RETAIL RETURN ON ASSETS SECURITIES SHARE OF ASSETS SHAREHOLDERS SOURCE OF FUNDS SOURCES OF FUNDS SPREAD SUBSIDIARIES SUBSIDIARY SUPERVISION OF BANKS SUPERVISORY AGENCY TAX TAX RETURN TAXATION TIME DEPOSITS TRACK RECORD TRANSPARENCY UNION WORLD DEVELOPMENT INDICATORS |
| spellingShingle |
AFFILIATES ASSET RATIO AUDITING AUDITORS AUDITS BALANCE SHEET BANK ACTIVITIES BANK ASSETS BANK BORROWERS BANK COMPETITION BANK ENTRY BANK INTEREST MARGINS BANK LOANS BANK OPERATIONS BANK POLICY BANK SPREADS BANKING INDUSTRY BANKING MARKET BANKING REGULATIONS BANKING SECTOR BANKING SECTORS BANKING SYSTEM BANKS BARRIERS TO ENTRY BOND BONDS CAPITAL ADEQUACY CAPITAL ASSET CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKING CONSOLIDATION CONTESTABILITY CURRENCY DEPOSIT DEPOSIT RATES DEPOSITS DEREGULATION DERIVATIVE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DOMESTIC BANK DOMESTIC BANKS EMERGING MARKET EMERGING MARKET COUNTRIES EXIT FRAMEWORK EXTERNAL AUDITORS FAILURE RESOLUTION FINANCIAL COSTS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR ASSESSMENT FINANCIAL SERVICES FINANCIAL STABILITY FOREIGN BANK FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN PENETRATION FRAUD GLOBAL FINANCIAL SYSTEM GOVERNMENT BANK GOVERNMENT BANKS HOLDING HOLDING COMPANIES INCUMBENT BANKS INFLATION INFLATION RATE INPUT PRICE INPUT PRICES INSTITUTIONAL DEVELOPMENT INSURANCE INSURANCE ACTIVITIES INSURANCES INTEREST EXPENSES INTEREST INCOME INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL AUDITING STANDARDS INTERNATIONAL BANK ISSUANCE JOINT VENTURE JUDICIAL ENVIRONMENT LACK OF COMPETITION LAWS LENDING INSTRUMENTS LEVY LIBERALIZATION LIQUIDATION LIQUIDITY LOAN MACROECONOMIC CONDITIONS MARGINAL COSTS MARKET POWER MARKET STRUCTURE MONEY MARKET MONOPOLY MORTGAGE MORTGAGE LOANS MUTUAL FUND MUTUAL FUND INDUSTRY OUTPUT OUTPUTS OVERDRAFT OVERDRAFT FACILITIES OVERDRAFTS PERSONNEL EXPENSES PRIME RATE PRIVATE SECTOR DEVELOPMENT PROFITABILITY PROPERTY RIGHTS REAL ESTATE REAL ESTATE INVESTMENT REGULATORS REGULATORY FRAMEWORK RETAIL RETURN ON ASSETS SECURITIES SHARE OF ASSETS SHAREHOLDERS SOURCE OF FUNDS SOURCES OF FUNDS SPREAD SUBSIDIARIES SUBSIDIARY SUPERVISION OF BANKS SUPERVISORY AGENCY TAX TAX RETURN TAXATION TIME DEPOSITS TRACK RECORD TRANSPARENCY UNION WORLD DEVELOPMENT INDICATORS Demirguc-Kunt, Asli Martínez Pería, María Soledad A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan |
| geographic_facet |
Middle East and North Africa Jordan |
| relation |
Policy Research working paper ; no. WPS 5499 |
| description |
This paper proposes a framework to
analyze competition in the banking sector using Jordan as an
example. In particular, the paper pursues a multi-pronged
approach to analyze competition including (i) an examination
of the extent to which the market is contestable (that is,
has low barriers to bank entry and exit), (b) an evaluation
of the behavior of bank spreads, and (iii) an assessment of
non-structural and direct measures of bank competition such
as the H-statistic and the Lerner Index. This approach
provides a more comprehensive framework to examine
competition in the banking sector, compared with the
commonly used alternative of looking only at bank
concentration figures. In the case of Jordan, the analysis
indicates that although concentration has declined,
competition in the country is low and has decreased over time. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Demirguc-Kunt, Asli Martínez Pería, María Soledad |
| author_facet |
Demirguc-Kunt, Asli Martínez Pería, María Soledad |
| author_sort |
Demirguc-Kunt, Asli |
| title |
A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan |
| title_short |
A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan |
| title_full |
A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan |
| title_fullStr |
A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan |
| title_full_unstemmed |
A Framework for Analyzing Competition in the Banking Sector : An Application to the Case of Jordan |
| title_sort |
framework for analyzing competition in the banking sector : an application to the case of jordan |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101213102840 http://hdl.handle.net/10986/3982 |
| _version_ |
1764389333822865408 |