Do Brazilian Banks Compete?

WPIEA1132003 Image
Price:  $15.00

Author/Editor: Agnes Belaisch
Release Date: © June, 2003
ISBN : 978-1-45185-372-8
Stock #: WPIEA1132003
English
Stock Status: On back-order

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Description

More developed financial systems are associated with higher investment and better economic performance. This paper discusses possible factors that may inhibit a deepening of bank intermediation and more efficient banking in Brazil, two aspects that are found to be significantly different than in leading banking systems in other parts of the world. Using panel data, it finds positive evidence of the presence of a noncompetitive market structure in the Brazilian banking system, a factor that could explain why intermediation may be relatively low and costly. When banks behave like local monopolies or oligopolies, incentives to improve efficiency are weak and the interest rate spread is large, discouraging higher lending volumes.

Taxonomy

Competition , International trade




More publications in this series: Working Papers


More publications by: Agnes Belaisch