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
Recommended Citation
Nurboja, Bashkim and Kosak, Marko, "What Affects the Market Share in Banking: Evidence from the Old and New EU Members and Candidate Countries?" (2019). UBT International Conference. 334.
https://knowledgecenter.ubt-uni.net/conference/2019/events/334
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.