IDEAS home Printed from https://ideas.repec.org/a/mnb/finrev/v16y2017i3p5-31.html
   My bibliography  Save this article

Resolving Conflicts in Measuring Banking System Competitiveness – MNB Banking System Competitiveness Index

Author

Listed:
  • Péter Asztalos

    (Magyar Nemzeti Bank)

  • Gábor Horváth

    (Magyar Nemzeti Bank)

  • Štefan Krakovský

    (Magyar Nemzeti Bank)

  • Tamás Tóth

    (Magyar Nemzeti Bank)

Abstract

The competitiveness of a national economy structurally depends on the efficiency and quality of financial intermediation, which is in a close relationship with the competitiveness of the banking system. In our opinion, banking system competitiveness can best be captured through the sustained supportive role of the banking system in economic growth, which in practice is implemented through the efficient allocation of financial resources. In the course of our research we developed an index designed to measure the competitiveness of European banking systems which, in our understanding, is the first of its kind. It models competitiveness from two different or even conflicting perspectives – from the consumer and from the investor side alike – and synthesizes the results received. Our analysis points out that the Hungarian banking system lags significantly behind its peers with respect to the price-setting of loans to households, digitalisation and operational efficiency, and presents the sources of competitive advantage in national economies with a competitive banking system in place.

Suggested Citation

  • Péter Asztalos & Gábor Horváth & Štefan Krakovský & Tamás Tóth, 2017. "Resolving Conflicts in Measuring Banking System Competitiveness – MNB Banking System Competitiveness Index," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 16(3), pages 5-31.
    • Handle: RePEc:mnb:finrev:v:16:y:2017:i:3:p:5-31
    as

    Download full text from publisher

    File URL: http://english.hitelintezetiszemle.hu/letoltes/peter-asztalos-gabor-horvath-tefan-krakovsk-tamas-toth.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michiel van Leuvensteijn & Christoffer Kok Sørensen & Jacob A. Bikker & Adrian A.R.J.M. van Rixtel, 2013. "Impact of bank competition on the interest rate pass-through in the euro area," Applied Economics, Taylor & Francis Journals, vol. 45(11), pages 1359-1380, April.
    2. Stijn Claessens & Luc Laeven, 2004. "What drives bank competition? Some international evidence," Proceedings, Federal Reserve Bank of Cleveland, pages 563-592.
    3. Berger, Allen N, 1995. "The Profit-Structure Relationship in Banking--Tests of Market-Power and Efficient-Structure Hypotheses," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 404-431, May.
    4. Thomas Hatzichronoglou, 1996. "Globalisation and Competitiveness: Relevant Indicators," OECD Science, Technology and Industry Working Papers 1996/5, OECD Publishing.
    5. Stijn Claessens, 2009. "Competition in the Financial Sector: Overview of Competition Policies," The World Bank Research Observer, World Bank, vol. 24(1), pages 83-118, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chortareas, Georgios E. & Garza-García, Jesús G. & Girardone, Claudia, 2012. "Competition, efficiency and interest rate margins in Latin American banking," International Review of Financial Analysis, Elsevier, vol. 24(C), pages 93-103.
    2. Heckmann, Lotta & Moertel, Julia, 2020. "Hampered interest rate pass-through: A supply side story?," Discussion Papers 59/2020, Deutsche Bundesbank.
    3. Bing Xu & Adrian Van Rixtel & Michiel Van Leuvensteijn, 2013. "Measuring bank competition in China: a comparison of new versus conventional approaches applied to loan markets," BIS Working Papers 422, Bank for International Settlements.
    4. Bátiz-Zuk, Enrique & Lara-Sánchez, José Luis, 2022. "Measuring the evolution of competition and the impact of the financial reform in the Mexican banking sector, 2008–2019," Research in International Business and Finance, Elsevier, vol. 59(C).
    5. John K. Dadzie & Alessandra Ferrari, 2019. "Deregulation, efficiency and competition in developing banking markets: Do reforms really work? A case study for Ghana," Journal of Banking Regulation, Palgrave Macmillan, vol. 20(4), pages 328-340, December.
    6. Abdul Latif Alhassan & Nicholas Biekpe, 2017. "Liberalization Outcomes and Competitive Behaviour in an Emerging Insurance Market," African Development Review, African Development Bank, vol. 29(2), pages 122-138, June.
    7. Berger, Allen N. & Boot, Arnoud W.A., 2024. "Financial intermediation services and competition analyses: Review and paths forward for improvement," Journal of Financial Intermediation, Elsevier, vol. 57(C).
    8. Olszak, Małgorzata & Kowalska, Iwona, 2023. "Do competition and market structure affect sensitivity of bank profitability to the business cycle?," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    9. Bo Liu & James D. Shilling & Tien Foo Sing, 2020. "Large Banks and Efficient Banks: how Do they Influence Credit Supply and Default Risk?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 57(1), pages 1-28, February.
    10. Sanderson Abel & Hlalefang Khobai & Pierre Le Roux, 2017. "Domestic or Foreign Banks? Who Wields more Market Power?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 175-181.
    11. Bishnu Prasad Neupane, 2016. "Competition in Nepalese Commercial Banks," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 28(2), pages 75-89, October.
    12. Ornelas, José Renato Haas & da Silva, Marcos Soares & Van Doornik, Bernardus Ferdinandus Nazar, 2022. "Informational switching costs, bank competition, and the cost of finance," Journal of Banking & Finance, Elsevier, vol. 138(C).
    13. Carbó, Santiago & Humphrey, David & Maudos, Joaquín & Molyneux, Philip, 2009. "Cross-country comparisons of competition and pricing power in European banking," Journal of International Money and Finance, Elsevier, vol. 28(1), pages 115-134, February.
    14. Jose E. Gomez-Gonzalez & Sebastian Sanin-Restrepo & Cesar E. Tamayo & Oscar M. Valencia, 2023. "Bank market power and firm finance: evidence from bank and loan-level data," Economic Change and Restructuring, Springer, vol. 56(6), pages 4629-4660, December.
    15. Coccorese, Paolo, 2009. "Market power in local banking monopolies," Journal of Banking & Finance, Elsevier, vol. 33(7), pages 1196-1210, July.
    16. Shannon Mudd, 2013. "Bank Structure, Relationship Lending and Small Firm Access to Finance: A Cross-Country Investigation," Journal of Financial Services Research, Springer;Western Finance Association, vol. 44(2), pages 149-174, October.
    17. Shin, Dong Jin & Kim, Brian H.S., 2013. "Bank consolidation and competitiveness: Empirical evidence from the Korean banking industry," Journal of Asian Economics, Elsevier, vol. 24(C), pages 41-50.
    18. Horváth, Roman & Podpiera, Anca, 2012. "Heterogeneity in bank pricing policies: The Czech evidence," Economic Systems, Elsevier, vol. 36(1), pages 87-108.
    19. Manlagñit, Maria Chelo V., 2011. "The economic effects of foreign bank presence: Evidence from the Philippines," Journal of International Money and Finance, Elsevier, vol. 30(6), pages 1180-1194, October.
    20. Feldman, David & Saxena, Konark & Xu, Jingrui, 2020. "Is the active fund management industry concentrated enough?," Journal of Financial Economics, Elsevier, vol. 136(1), pages 23-43.

    More about this item

    Keywords

    finance; capital attractiveness; stability; growth; competitiveness;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnb:finrev:v:16:y:2017:i:3:p:5-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Morvay Endre (email available below). General contact details of provider: https://edirc.repec.org/data/mnbgvhu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.