IDEAS home Printed from https://ideas.repec.org/a/sek/jijoes/v5y2016i2p42-54.html
   My bibliography  Save this article

Retail banking in the Czech Republic ? a comparison of consumer prices between 2011 and 2014

Author

Listed:
  • Ale? Rod

    (University of Economics (Department of Economics))

  • Klára ?ermáková

    (University of Economics (Department of Economics))

Abstract

The banking sector has been developing very rapidly in the past century. In Czechoslovakia as well as in other post-communist countries, the development differed due to specifics of the centrally planned system with a monobank and no official competition in retail banking. This specific factor influenced the development of the banking industry after 1990, when big banks used information asymmetry in individual parts of profit seeking (esp. income diversification). Growing competition, development of information technology and growing literacy of bank customers have decreased retail prices only after 2011, as shown by performed comparison of retail prices of banking services in the examined period. Using comparison of retail banking clients clusters the paper identifies factors of significant decrease of retail prices of bank services. We focus on discussing these factors, mainly growing competition, growing financial literacy, lowering transaction costs. This paper raises a very important question whether the ?big four? on the retail banking market would keep their hegemony or the competition on this market would prevail. To answer this question is the aim of our next research.

Suggested Citation

  • Ale? Rod & Klára ?ermáková, 2016. "Retail banking in the Czech Republic ? a comparison of consumer prices between 2011 and 2014," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(2), pages 42-54, June.
  • Handle: RePEc:sek:jijoes:v:5:y:2016:i:2:p:42-54
    as

    Download full text from publisher

    File URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-461
    Download Restriction: no

    File URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-461?download=3
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gelos, R. G. & Roldos, Jorge, 2004. "Consolidation and market structure in emerging market banking systems," Emerging Markets Review, Elsevier, vol. 5(1), pages 39-59, March.
    2. Roman Matoušek & Anita Taci, 2005. "Efficiency in Banking: Empirical Evidence from the Czech Republic," Economic Change and Restructuring, Springer, vol. 37(3), pages 225-244, September.
    3. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    4. Pavel Dvorak & Jan Hanousek, 2009. "Paying for Banking Services: What Determines the Fees?," CERGE-EI Working Papers wp388, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oldrich Kucera & Bozena Kaderabkova, 2023. "Consumers´ Decision-Making under Salop´s Model: Key Study on Starbucks Prague and Richmond business model," International Journal of Economic Sciences, European Research Center, vol. 12(1), pages 102-132, May.

    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. C. Spulbăr & M. Niţoi, 2014. "Determinants of bank cost efficiency in transition economies: evidence for Latin America, Central and Eastern Europe and South-East Asia," Applied Economics, Taylor & Francis Journals, vol. 46(16), pages 1940-1952, June.
    2. J. K. Pappalardo, 2022. "Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy," Journal of Consumer Policy, Springer, vol. 45(2), pages 201-238, June.
    3. Barros, Carlos Pestana & Williams, Jonathan, 2013. "The random parameters stochastic frontier cost function and the effectiveness of public policy: Evidence from bank restructuring in Mexico," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 98-108.
    4. Castilla, Carolina & Haab, Timothy C., 2010. "Asymmetric Search and Loss Aversion: Choice Experiment on Consumer Willingness to Search in the Gasoline Retail Market," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61672, Agricultural and Applied Economics Association.
    5. Dhaval M. Dave, 2013. "Effects of Pharmaceutical Promotion: A Review and Assessment," NBER Working Papers 18830, National Bureau of Economic Research, Inc.
    6. Andrew Caplin & Mark Dean & Daniel Martin, 2011. "Search and Satisficing," American Economic Review, American Economic Association, vol. 101(7), pages 2899-2922, December.
    7. Tan Wang & Tony S. Wirjanto, 2016. "Risk Aversion, Uncertainty, Unemployment Insurance Benefit and Duration of "Wait" Unemployment," Annals of Economics and Finance, Society for AEF, vol. 17(1), pages 1-34, May.
    8. Hakan Yilmazkuday, 2017. "Geographical dispersion of consumer search behaviour," Applied Economics, Taylor & Francis Journals, vol. 49(57), pages 5740-5752, December.
    9. Kozloff, Keith, 1990. "An Evaluation Of Options For Micro-Targeting Acquisition Of Cropping Rights To Reduce Nonpoint Source Water Pollution," Staff Papers 13610, University of Minnesota, Department of Applied Economics.
    10. Linda S Goldberg, 2009. "Understanding Banking Sector Globalization," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 171-197, April.
    11. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    12. Peter J. Kaufmann, 1987. "The Community Trademark; Its Role in Making the Internal Market Effective," Journal of Common Market Studies, Wiley Blackwell, vol. 25(3), pages 223-235, March.
    13. Ben Smith, 1977. "Bilateral Monopoly and Export Price Bargaining in the Resource Goods Trade," The Economic Record, The Economic Society of Australia, vol. 53(1), pages 30-50, March.
    14. Fontaine, François & Martin, Julien & Mejean, Isabelle, 2020. "Price discrimination within and across EMU markets: Evidence from French exporters," Journal of International Economics, Elsevier, vol. 124(C).
    15. Shastitko, Andrey & Golovanova, Svetlana, 2016. "Meeting blindly… Is Austrian economics useful for dynamic capabilities theory?," Russian Journal of Economics, Elsevier, vol. 2(1), pages 86-110.
    16. Eckard, E. Woodrow, 2007. "Retail price concentration, transaction costs, and price flexibility circa 1900," Explorations in Economic History, Elsevier, vol. 44(1), pages 131-153, January.
    17. Subramanian Rangan & Robert Z. Lawrence, 1999. "Search and Deliberation in International Exchange: Learning from Multinational Trade About Lags, Distance Effects, and Home Bias," NBER Working Papers 7012, National Bureau of Economic Research, Inc.
    18. Feser, Daniel & Runst, Petrik, 2016. "Energy efficiency consultants as change agents? Examining the reasons for EECs’ limited success," Energy Policy, Elsevier, vol. 98(C), pages 309-317.
    19. Gabriele Angori & David Aristei, 2020. "Heterogeneity and state dependence in firms’ access to credit: Microevidence from the euro area," SEEDS Working Papers 0220, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Feb 2020.
    20. Dmitri Kuksov & Ashutosh Prasad & Mohammad Zia, 2017. "In-Store Advertising by Competitors," Marketing Science, INFORMS, vol. 36(3), pages 402-425, May.

    More about this item

    Keywords

    Retail banking; competition; financial literacy; income diversification; consumer prices; fees and commissions;
    All these keywords.

    JEL classification:

    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    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:sek:jijoes:v:5:y:2016:i:2:p:42-54. 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: Klara Cermakova (email available below). General contact details of provider: https://ijoes.iises.net/ .

    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.