Joint market power in banking
We propose an oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries and derive a pricing structure that acknowledges joint market power in both the deposit and loan markets. The model identifies two main components to pricing: rent extraction and input costs. We...
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| Format: | article |
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2014
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| Online Access: | http://hdl.handle.net/10725/3868 http://dx.doi.org/10.1016/j.intfin.2014.03.013 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://www.sciencedirect.com/science/article/pii/S1042443114000390 |
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| _version_ | 1864513462458122240 |
|---|---|
| author | Marrouch, Walid |
| author2 | Turk-Ariss, Rima |
| author2_role | author |
| author_facet | Marrouch, Walid Turk-Ariss, Rima |
| author_role | author |
| dc.creator.none.fl_str_mv | Marrouch, Walid Turk-Ariss, Rima |
| dc.date.none.fl_str_mv | 2014 2016-05-20T12:28:06Z 2016-05-20T12:28:06Z 2016-05-20 |
| dc.identifier.none.fl_str_mv | 1042-4431 http://hdl.handle.net/10725/3868 http://dx.doi.org/10.1016/j.intfin.2014.03.013 Marrouch, W., & Turk-Ariss, R. (2014). Joint market power in banking: Evidence from developing countries. Journal of International Financial Markets, Institutions and Money, 31, 253-267. http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://www.sciencedirect.com/science/article/pii/S1042443114000390 |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Journal of International Financial Markets, Institutions and Money |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | Joint market power in banking Evidence from developing countries |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | We propose an oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries and derive a pricing structure that acknowledges joint market power in both the deposit and loan markets. The model identifies two main components to pricing: rent extraction and input costs. We measure the ability of the banking industry to extract rents from the exercise of joint market power using a sample of 103 developing countries. We find that market power rents are economically significant. Also, the role played by the rent extraction share in loan pricing dominates the share of input costs on average. |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_481aea6a65602a3d0c703e76dcb4489a |
| identifier_str_mv | 1042-4431 Marrouch, W., & Turk-Ariss, R. (2014). Joint market power in banking: Evidence from developing countries. Journal of International Financial Markets, Institutions and Money, 31, 253-267. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/3868 |
| publishDate | 2014 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
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| spelling | Joint market power in bankingEvidence from developing countriesMarrouch, WalidTurk-Ariss, RimaWe propose an oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries and derive a pricing structure that acknowledges joint market power in both the deposit and loan markets. The model identifies two main components to pricing: rent extraction and input costs. We measure the ability of the banking industry to extract rents from the exercise of joint market power using a sample of 103 developing countries. We find that market power rents are economically significant. Also, the role played by the rent extraction share in loan pricing dominates the share of input costs on average.PublishedN/A2016-05-20T12:28:06Z2016-05-20T12:28:06Z20142016-05-20Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article1042-4431http://hdl.handle.net/10725/3868http://dx.doi.org/10.1016/j.intfin.2014.03.013Marrouch, W., & Turk-Ariss, R. (2014). Joint market power in banking: Evidence from developing countries. Journal of International Financial Markets, Institutions and Money, 31, 253-267.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttp://www.sciencedirect.com/science/article/pii/S1042443114000390enJournal of International Financial Markets, Institutions and Moneyinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/38682021-03-19T09:10:07Z |
| spellingShingle | Joint market power in banking Marrouch, Walid |
| status_str | publishedVersion |
| title | Joint market power in banking |
| title_full | Joint market power in banking |
| title_fullStr | Joint market power in banking |
| title_full_unstemmed | Joint market power in banking |
| title_short | Joint market power in banking |
| title_sort | Joint market power in banking |
| url | http://hdl.handle.net/10725/3868 http://dx.doi.org/10.1016/j.intfin.2014.03.013 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php http://www.sciencedirect.com/science/article/pii/S1042443114000390 |