• Medientyp: Bericht; E-Book
  • Titel: Romanian banking competition. A new structural approach
  • Beteiligte: Mereuta, Cezar [Verfasser:in]; Capraru, Bogdan [Verfasser:in]
  • Erschienen: Bucharest: Romanian Academy, National Institute for Economic Research, 2012
  • Sprache: Englisch
  • Schlagwörter: structural approach ; G21 ; competition ; L11 ; banks ; Romania
  • Entstehung:
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  • Beschreibung: In this work, we evaluate the competition in the Romanian banking system as regards the distortions in terms of market shares and the origin of capital, for the period 2000-2010, using the methodology of the structural analysis of the markets promoted by Mereuta (2012). Thus, we firstly check the features of structural distributions of the market shares in the case of the Romanian banking system, in the period 2000 2010; then we apply the Mereuta universal concentration matrix (2012) where we analyse the competition on the Romanian banking market, using two indicators: the M index and the degree of the structural dominance of the market leader (Gdl), and finally we conclude a "nodal" analysis of the Romanian banking system. Our approach demonstrates that all the structural peculiarities of the distributions of macro-experiment are confirmed in the Romanian banking system during the period 2000 - 2010 and that, in the period under review, the competition has continuously grown on the Romanian banking market, in particular due to the phenomenon of penetration of foreign capital. The distortions of competition in the light of the origin of the capital show that the penetration of foreign capital also increased its vulnerability and the risk of contagion. As regards policy recommendations for regulatory and supervisory authority, we suggest a very careful monitoring of soundness of all foreign banks, not only those from nodal countries; a close collaboration of National Bank of Romania (NBR) with the regulatory and supervisory authorities in the countries of origin of foreign banks branches; as well as a higher emphasis on the conduct of business of the banks and consumer protection. As for the banks management, we recommend that the stability of banks should be the main concern, rather than the preservation or increase in market shares.
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