This paper aims to assess the degree of competition in the Italian banking industry between 1988 and 1996 by employing the Rosse Panzar H-statistic. The empirical results suggest that during the above period Italian banks earned revenues as if they were under conditions of monopolistic competition. This finding appears to be consistent with the structure of the Italian banking system, which is characterised by the existence of both large size banks, spread over the whole country and enjoying large scale economies, and small size banks, which are usually reliant on a high market quota at a local level, but face potential competition from the larger banks.
Assessing the competitive conditions in the Italian banking system: some empirical evidence
COCCORESE, Paolo
1998-01-01
Abstract
This paper aims to assess the degree of competition in the Italian banking industry between 1988 and 1996 by employing the Rosse Panzar H-statistic. The empirical results suggest that during the above period Italian banks earned revenues as if they were under conditions of monopolistic competition. This finding appears to be consistent with the structure of the Italian banking system, which is characterised by the existence of both large size banks, spread over the whole country and enjoying large scale economies, and small size banks, which are usually reliant on a high market quota at a local level, but face potential competition from the larger banks.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
