The Analysis of Market Power and Efficiency on Performance of French Banking Industry

This paper provides an empirical analysis of the relationship among market structure, efficiency and profitability in French banks from 2011 to 2016, after the changes in regulation of French banking industry and financial crisis. This analysis follows Berger’s (1995) model by testing the market pow...

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Main Author: AKTYPI, THEOFANO
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/54453/
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author AKTYPI, THEOFANO
author_facet AKTYPI, THEOFANO
author_sort AKTYPI, THEOFANO
building Nottingham Research Data Repository
collection Online Access
description This paper provides an empirical analysis of the relationship among market structure, efficiency and profitability in French banks from 2011 to 2016, after the changes in regulation of French banking industry and financial crisis. This analysis follows Berger’s (1995) model by testing the market power (Structure-Conduct-Performance and Relative Market Power) and efficient structure(X-and Scale Efficiency) hypotheses in relation to the banks’ profitability. In addition, the necessary condition for efficient structure hypotheses and the ‘quiet life’ hypothesis are further tested. Moreover, the Stochastic Frontier Analysis technique will be adopted for obtaining reliable efficiency measures for latter hypothesis. Using a balanced panel of 57 French banks between 2011 and 2016, this paper supports for the SCP hypothesis during the researched period. The X-efficiency hypothesis is preliminarily supported, but there is no evidence to support the necessary condition. Thus for the French banks, high profits could obtained from the higher level of market concentration. Overall, the stronger role of competition policy might be suggested for the French government to better development of its banking industry.
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spelling nottingham-544532022-08-18T15:32:25Z https://eprints.nottingham.ac.uk/54453/ The Analysis of Market Power and Efficiency on Performance of French Banking Industry AKTYPI, THEOFANO This paper provides an empirical analysis of the relationship among market structure, efficiency and profitability in French banks from 2011 to 2016, after the changes in regulation of French banking industry and financial crisis. This analysis follows Berger’s (1995) model by testing the market power (Structure-Conduct-Performance and Relative Market Power) and efficient structure(X-and Scale Efficiency) hypotheses in relation to the banks’ profitability. In addition, the necessary condition for efficient structure hypotheses and the ‘quiet life’ hypothesis are further tested. Moreover, the Stochastic Frontier Analysis technique will be adopted for obtaining reliable efficiency measures for latter hypothesis. Using a balanced panel of 57 French banks between 2011 and 2016, this paper supports for the SCP hypothesis during the researched period. The X-efficiency hypothesis is preliminarily supported, but there is no evidence to support the necessary condition. Thus for the French banks, high profits could obtained from the higher level of market concentration. Overall, the stronger role of competition policy might be suggested for the French government to better development of its banking industry. 2018-09-12 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54453/1/DISSERTATION%20FINAL.pdf AKTYPI, THEOFANO (2018) The Analysis of Market Power and Efficiency on Performance of French Banking Industry. [Dissertation (University of Nottingham only)] Market structure Efficiency and Performance of French Banks
spellingShingle Market structure
Efficiency and Performance of French Banks
AKTYPI, THEOFANO
The Analysis of Market Power and Efficiency on Performance of French Banking Industry
title The Analysis of Market Power and Efficiency on Performance of French Banking Industry
title_full The Analysis of Market Power and Efficiency on Performance of French Banking Industry
title_fullStr The Analysis of Market Power and Efficiency on Performance of French Banking Industry
title_full_unstemmed The Analysis of Market Power and Efficiency on Performance of French Banking Industry
title_short The Analysis of Market Power and Efficiency on Performance of French Banking Industry
title_sort analysis of market power and efficiency on performance of french banking industry
topic Market structure
Efficiency and Performance of French Banks
url https://eprints.nottingham.ac.uk/54453/