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Measuring the Level of Competition in the Argentine Banking Industry

Author

Listed:
  • Marcelo Dabos

    (Department of Economics, Universidad de San Andres)

  • Daniel Aromi

    (Department of Economics, Universidad de San Andres)

Abstract

Loan rates in Argentina are high. The objective of this work is to test if market power is one of the causes of these levels of interest rates and to measure its effects. For that purpose we work with data of the period 1994-1999. The tests indicate that there is market power in the peso operation sector and perfect competition can not be rejected in the dollar operation sector. We also find that there was no significant change in our measure of market power during the years we have analyzed.

Suggested Citation

  • Marcelo Dabos & Daniel Aromi, 2001. "Measuring the Level of Competition in the Argentine Banking Industry," Working Papers 34, Universidad de San Andres, Departamento de Economia, revised May 2001.
    • Handle: RePEc:sad:wpaper:34
    as

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    File URL: https://webacademicos.udesa.edu.ar/pub/econ/doc34.pdf
    File Function: First version, 2001
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    References listed on IDEAS

    as
    1. Gruben, William C. & McComb, Robert P., 2003. "Privatization, competition, and supercompetition in the Mexican commercial banking system," Journal of Banking & Finance, Elsevier, vol. 27(2), pages 229-249, February.
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    3. Broecker, Thorsten, 1990. "Credit-Worthiness Tests and Interbank Competition," Econometrica, Econometric Society, vol. 58(2), pages 429-452, March.
    4. Rajan, Raghuram G, 1992. "Insiders and Outsiders: The Choice between Informed and Arm's-Length Debt," Journal of Finance, American Finance Association, vol. 47(4), pages 1367-1400, September.
    5. Sharpe, Steven A, 1990. "Asymmetric Information, Bank Lending, and Implicit Contracts: A Stylized Model of Customer Relationships," Journal of Finance, American Finance Association, vol. 45(4), pages 1069-1087, September.
    6. Alli Nathan & Edwin H. Neave, 1989. "Competition and Contestability in Canada's Financial System: Empirical Results," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 576-594, August.
    7. Marcelo Dabos, 1996. "Crisis Bancaria y Medicion de Riesgo de Default. Metodos y el Caso de los Bancos Cooperativos en Argentina," Working Papers 12, Universidad de San Andres, Departamento de Economia, revised Jul 1996.
    8. Gilbert, R Alton, 1984. "Bank Market Structure and Competition: A Survey," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 617-644, November.
    9. Shaffer, Sherrill, 1989. "Competition in the U.S. banking industry," Economics Letters, Elsevier, vol. 29(4), pages 321-323.
    10. Giovanni Dell'Ariccia & Ezra Friedman & Robert Marquez, 1999. "Adverse Selection as a Barrier to Entry in the Banking Industry," RAND Journal of Economics, The RAND Corporation, vol. 30(3), pages 515-534, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Roberto Cortes Conde, 2008. "Spanish America Colonial Patterns: The Rio de La Plata," Working Papers 96, Universidad de San Andres, Departamento de Economia, revised Mar 2008.

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    More about this item

    Keywords

    competition; Argentina; banks;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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