Preview

Review of Business and Economics Studies

Advanced search

MARKET CONCENTRATION AND COMPETITION IN VIETNAMESE BANKING SECTOR

Abstract

The wave of financial liberalization raises questions about the competitiveness of Vietnamese commercial banks against those from other countries. The main purpose of this paper is to measure the market concentration using the k banks concentration ratio (CRk) and the Hirschman-Herfindahl index (HHI) and speculate on the market competition in Vietnamese banking sector under Panzar - Rosse approach. Overall, Vietnamese banking sector is found to be highly concentrated although it is experiencing a decreasing trend.Also, the speculation of market competition indicates a monopolistic behavior of Vietnamese commercial banks.

About the Author

Le. H. Trung
Banking Academy of Vietnam
Russian Federation


References

1. Allen, F., & Gale, D. (2000). Financial Contagion. Journal of Political Economy, 108 (1), 1-33.

2. Beck, T. (2008). Bank competition and financial stability: friends or foes? Policy Research Working Paper Series 4656, The World Bank.

3. Berger, A. N., Klapper, L. F., & Turk-Ariss, R. (2009). Bank Competition and Financial Stability. Journal of Financial Services Research, 35 (2), 99-118.

4. Bikker, J., & Groeneveld, J. (2000)., Competition and concentration in the EU banking Industry. Kredit und Kapital, 33, 62-98.

5. Bikker, J., & Haaf, K. (2002). Competition, concentration and their relationship: An empirical analysis of the banking industry. Journal of Banking & Finance, 26 (11), 2191-2214.

6. Bikker, J., Shaffer, S., & Spierdijk, L. (2012). Assessing Competition with the Panzar-Rosse Model: The Role of Scale, Costs, and Equilibrium. The Review of Economics and Statistics, 94 (4), 1025-1044.

7. Boot, A. W., & Thakor, A. V. (2000). Can Relationship Banking Survive Competition? Journal of Finance, American Finance Association, 55 (2), 679-713.

8. Boyd, J. H., & Nicolo, G. D. (2005). The theory of Bank Risk Taking and Competition Revisited. Journal of Finance, 60 (3), 1329-1343. Bresnahan, T. F. (1989). Empirical studies of industries with market power. In R. Schmalensee, & R. Willig (Eds.), Handbook of Industrial Organization (1st ed., Vol. 2, pp. 1011-1057). Elsevier.

9. Casu, B., & Girardone, C. (2006). Bank Competition, Concentration And Efficiency In The Single European Market. Manchester School, University of Manchester, 74 (04), 441-468.

10. Claessens, S., & Laeven, L. (2004). What Drives Bank Competition? Some International Evidence. Journal of Money, Credit and Banking, 36 (3), 563-583.


Review

For citations:


Trung L.H. MARKET CONCENTRATION AND COMPETITION IN VIETNAMESE BANKING SECTOR. Review of Business and Economics Studies. 2015;3(1):67-79. (In Russ.)



Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.


ISSN 2308-944X (Print)
ISSN 2311-0279 (Online)