Event Title

What Affects the Market Share in Banking: Evidence from the Old and New EU Members and Candidate Countries?

Session

Management, Business and Economics

Description

In this study we investigate how cost efficiency and risk affects market share in European banking industry. In contrast to other studies, we have included risk as determinant of market share. The results revealed that risk and efficiency are positively correlated with market share of assets, loans and deposits. Moreover, we found that banks in transition countries gains less market share as a result of being more efficient than banks in European developed countries. The model was estimated by using the system GMM model in order to account for dynamics and to avoid the endogeneity problem. We have used annual data for 36 European countries’ banks for the years 2007–2015.

Keywords:

Bank efficiency, Risk, Market Share.

Session Chair

Edmond Hajrizi

Session Co-Chair

Naim Preniqi

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-19-2

Location

Pristina, Kosovo

Start Date

26-10-2019 11:00 AM

End Date

26-10-2019 12:30 PM

DOI

10.33107/ubt-ic.2019.334

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Oct 26th, 11:00 AM Oct 26th, 12:30 PM

What Affects the Market Share in Banking: Evidence from the Old and New EU Members and Candidate Countries?

Pristina, Kosovo

In this study we investigate how cost efficiency and risk affects market share in European banking industry. In contrast to other studies, we have included risk as determinant of market share. The results revealed that risk and efficiency are positively correlated with market share of assets, loans and deposits. Moreover, we found that banks in transition countries gains less market share as a result of being more efficient than banks in European developed countries. The model was estimated by using the system GMM model in order to account for dynamics and to avoid the endogeneity problem. We have used annual data for 36 European countries’ banks for the years 2007–2015.