Handbook of Competition in Banking and Finance
Show Less

Handbook of Competition in Banking and Finance

Edited by Jacob A. Bikker and Laura Spierdijk

For academics, regulators and policymaker alike, it is crucial to measure financial sector competition by means of reliable, well-established methods. However, this is easier said than done. The goal of this Handbook is to provide a collection of state-of-the-art chapters to address this issue. The book consists of four parts, the first of which discusses the characteristics of various measures of financial sector competition. The second part includes several empirical studies on the level of, and trends in, competition across countries. The third part deals with the spillovers of market power to other sectors and the economy as a whole. Finally, the fourth part considers competition in banking submarkets and subsectors.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 12: Banking competition and economic growth

Paolo Coccorese


Although it is recognized that competition is the most efficient and desirable market structure, banking markets represent an example of a sector where a competitive environment may even be harmful because, without an adequate degree of market power, banks cannot get enough information about borrowers and are less willing to engage in lending relationships with their clientele. In turn, these phenomena may have an adverse impact on their lending activity and hence on the overall economic performance. Both theoretical and empirical economic literature have not reached a clear-cut consensus on the way banks contribute to economic growth in either a more competitive or a more concentrated environment. In this chapter the author surveys the existing literature on the connection between competition in banking markets and real economic activity, and provides some new empirical evidence on the issue.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.