Research
Influence De La Concurrence Sur L’efficience Bancaire Dans Les Pays En Développement
The purpose of this article is to assess the effect of competition on banking efficiency in developing countries and particularly some countries of the CEMAC during the period 2000- 2013. To achieve this, our methodological approach is structured around two stages. First, we calculate the banking efficiency levels using the non-parametric input-oriented DEA method with variable returns to scales. Second, we assess the effect of competition as measured by the CR3 concentration ratio on efficiency levels using a Tobit model. The results reveal a negative effect of competition on bank efficiency.
Effet Du Pouvoir De Marché Sur La Prise De Risque Bancaire En Zone Cemac
This article assesses the effect of market power on Bank Risk Taking in the CEMAC zone for the period 2000-2016. Competition is approximated by a structural indicator (concentration ratio) and a non-structural indicator (Boone indicator). Bank stability is measured by z-score. Estimations by the generalised method of moments show that when the relationship between competition and banking stability is assumed to be linear, the results support the competition-fragility or concentration-stability thesis. However, the test of non-linearity by introducing the quadratic term of the measure of competition indicator in the model shows that there is a threshold beyond which an increase in market power (less competition) could begin to harm stability. Thus, before taking action on competition in the CEMAC, regulatory authorities must consider this non-linear relationship between banking stability and competition.
