Bank Performance: an empirical assessment of the degree of competition within the banking system

Based on the non-structural model – disequilibrium approach (Goddard and Wilson, 2009), this research presents an empirical assessment of the degree of competition within the banking system. We examine a greater number of environmental covariates and different dependent variables compared to previous applications of this model. Moreover, we use lagged input prices (to avoid endogeneity) and exclude assets (to avoid specification bias) in our models.

This study analyses bank efficiency. We apply an advanced methodological approach introduced by Simar and Wilson (2007) to examine bank efficiency. The objective of our study is threefold. First, we analyse bank efficiency in by applying an advanced semi-parametric two stage method introduced by Simar and Wilson (2007). Second, we identify the determinants of bank efficiency. Third, we provide a detailed analysis of bank efficiency for different ownership structures and bank size.