SỐ 208 | Tháng 7/2023
Cạnh tranh thị trường, điều tiết vốn và chi phí trung gian tài chính: nghiên cứu thực nghiệm về khu vực ngân hàng của Bangladesh
MD. Rasel Mia
Tóm tắt:
Mục đích - Nghiên cứu này nhằm mục đích kiểm tra tác động của cạnh tranh thị trường và quy định về vốn đối với chi phí trung gian tài chính của các ngân hàng thuộc ngành ngân hàng Bangladesh.
Thiết kế/phương pháp nghiên cứu /phương pháp tiếp cận - Nghiên cứu này sử dụng bộ dữ liệu bảng cân bằng bao gồm 340 quan sát trong năm của công ty đối với 34 ngân hàng thương mại trong ngành ngân hàng Bangladesh từ năm 2011 đến năm 2020. Công cụ ước tính bảng Prais Winsten được sử dụng để đánh giá tác động của cạnh tranh thị trường và quy định về vốn đối với chi phí trung gian tài chính của các ngân hàng.
Kết quả - Dựa trên kết quả hồi quy, nghiên cứu này cho thấy rằng cạnh tranh thị trường lớn hơn dẫn đến chi phí trung gian tài chính cho ngân hàng thấp hơn. Tương tự, việc tăng vốn pháp định của các ngân hàng làm tăng chi phí trung gian tài chính của các ngân hàng. Những phát hiện chính của nghiên cứu này được thể hiện rõ qua cách sử dụng các biến đại diện thay thế cho chi phí trung gian tài chính, cạnh tranh thị trường và điều tiết vốn. Kết quả hồi quy cũng cho thấy các ngân hàng thương mại tư nhân có chi phí trung gian tài chính cao hơn các ngân hàng thương mại nhà nước.
Hạn chế/ý nghĩa nghiên cứu - Cải cách quy định cần hướng tới thúc đẩy cạnh tranh thị trường bền vững và tối ưu cho ngành ngân hàng Bangladesh nhằm điều tiết sức mạnh thị trường của các ngân hàng nhằm giảm chi phí trung gian tài chính. Cơ quan quản lý của Bangladesh cần tìm ra các biện pháp chính sách tối ưu để thực hiện quy định về vốn trong ngành ngân hàng nhằm giảm chi phí biên trung gian tài chính của các ngân hàng.
Tính mới/giá trị - Không giống như các nghiên cứu trước đây sử dụng thước đo cạnh tranh thị trường cấu trúc, nghiên cứu này sử dụng thước đo cạnh tranh thị trường phi cấu trúc để đánh giá mối quan hệ giữa cạnh tranh thị trường và chi phí trung gian tài chính trong ngành ngân hàng Bangladesh.
Tài liệu tham khảo:
- Aboagye, A.Q., Akoena, S., Antwi-asare, T.O. and Gockel, A. (2008), “Explaining interest rate spreads in Ghana”, African Development Review, Vol. 20 No. 3, pp. 378-399.
- Afzal, A. and Mirza, N. (2012), “Interest rate spreads in an emerging economy: the case of Pakistan's commercial banking sector”, Economic Research-Ekonomska Istraživanja, Vol. 25 No. 4, pp. 987-1004.
- Ahokpossi, M.C. (2013), “Determinants of bank interest margins in Sub-saharan Africa”, IMF Working Papers 2013/034, International Monetary Fund.
- Allen, L. (1988), “The determinants of bank interest margins: a note”, Journal of Financial and Quantitative Analysis, Vol. 23 No. 2, pp. 231-235.
- Amidu, M. and Wolfe, S. (2013), “The impact of market power and funding strategy on bank-interest margins”, The European Journal of Finance, Vol. 19 No. 9, pp. 888-908.
- Angbazo, L. (1997), “Commercial bank net interest margins, default risk, interest-rate risk, and off-balance sheet banking”, Journal of Banking and Finance, Vol. 21 No. 1, pp. 55-87.
- Angelini, P., Clerc, L., Cúrdia, V., Gambacorta, L., Gerali, A., Locarno, A., Motto, R., Roeger, W., Van Den Heuvel, S. and Vlček, J. (2015), “Basel III: long-term impact on economic performance and fluctuations”, The Manchester School, Vol. 83 No. 2, pp. 217-251.
- Anginer, D., Bertay, A.C., Cull, R., Demirgüç-kunt, A. and Mare, D.S. (2021), “Bank capital regulation and risk after the global financial crisis”, Journal of Financial Stability, 100891, available at: https://www.sciencedirect.com/science/article/abs/pii/S1572308921000516
- Baumol, W.J., Panzar, J.C. and Willig, R.D. (1988), Contestable Markets and the Theory of Industry Structure, Harcourt College Pub, San Diego, California.
- Beck, T. and Hesse, H. (2009), “Why are interest spreads so high in Uganda?”, Journal of Development Economics, Vol. 88 No. 2, pp. 192-204.
- Beck, N. and Katz, J.N. (1995), “What to do (and not to do) with time-series cross-section data”, American Political Science Review, Vol. 89 No. 3, pp. 634-647.
- Bernanke, B.S. (1983), “Non-monetary effects of the financial crisis in the propagation of the great depression”, NBER Working Paper No. 1054, National Bureau of Economic Research.
- Blundell-Wignall, A., Atkinson, P. and Roulet, C. (2014), “Bank business models and the Basel system: complexity and interconnectedness”, OECD Journal: Financial Market Trends, OECD Publishing, Vol. 2013 No. 2, pp. 43-68.
- Carmassi, J. and Micossi, S. (2012), Time to Set Banking Regulation Right, Centre for European Policy Studies, available at: https://ssrn.com/abstract=2028881.
- Cetorelli, N. and Gambera, M. (2001), “Banking market structure, financial dependence and growth: international evidence from industry data”, The Journal of Finance, Vol. 56 No. 2, pp. 617-648.
- Chortareas, G.E., Garza-García, J.G. and Girardone, C. (2012), “Competition, efficiency and interest rate margins in Latin American banking”, International Review of Financial Analysis, Vol. 24 C, pp. 93-103.
- Claessens, S. and Laeven, L. (2004), “What drives bank competition? Some international evidence”, Journal of Money, Credit and Banking, Vol. 36 No. 3, pp. 563-583.
- Das Gupta, A., Sarker, N. and Rifat Rahman, M. (2021), “Relationship among cost of financial intermediation, risk, and efficiency: empirical evidence from Bangladeshi commercial banks”, Cogent Economics and Finance, Vol. 9 No. 1, 1967575.
- Demirguc-Kunt, A., Laeven, L. and Levine, R. (2003), Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation, National Bureau of Economic Research Cambridge, MA.
- Dey, B.K. (2019), “Managing nonperforming loans in Bangladesh”, ADB BRIEFS (NO. 116), available at: https://www.adb.org/publications/managing-nonperforming-loans-bangladesh
- Elizalde, A. (2007), “From basel I to basel II: an analysis of the three pillars”, Working Papers wp2007_0704, CEMFI.
- Elliott, D. and Santos, M.A. (2012), “Assessing the cost of financial regulation”, IMF Working Papers 2012/233, International Monetary Fund.
- Gischer, H. and Juttner, D.J. (2003), “Global competition, fee income and interest rate margins of banks”, Kredit und Kapital, Vol. 36 No. 3, pp. 368-394.
- Hair, J.F., Sarstedt, M., Ringle, C.M. and Mena, J.A. (2012), “An assessment of the use of partial least squares structural equation modeling in marketing research”, Journal of the Academy of Marketing Science, Vol. 40 No. 3, pp. 414-433.
- Haldane, A.G. and Madouros, V. (2012), “The dog and the frisbee”, Revista de Economía Institucional, Vol. 14 No. 27, pp. 13-56.
- Hawtrey, K. and Liang, H. (2008), “Bank interest margins in OECD countries”, The North American Journal of Economics and Finance, Vol. 19 No. 3, pp. 249-260.
- Ho, T.S. and Saunders, A. (1981), “The determinants of bank interest margins: theory and empirical evidence”, Journal of Financial and Quantitative Analysis, Vol. 16 No. 4, pp. 581-600.
- Hossain, M. (2012), “Financial reforms and persistently high bank interest spreads in Bangladesh: pitfalls in institutional development?”, Journal of Asian Economics, Vol. 23 No. 4, pp. 395-408.
- Hossain, M.Z., Khan, M.A.R. and Sadique, M.S. (2018), “Basel III and perceived resilience of banks in the BRICS economies”, Applied Economics, Vol. 50 No. 19, pp. 2133-2146.
- IIF, S. (2011), The Cumulative Impact on the Global Economy of Changes in the Financial Regulatory Framework, Institute of International Finance, Washington, DC.
- Islam, T. (2020), “NPL and its impact on the banking sector of Bangladesh”, The Financial Express, available at: https://thefinancialexpress.com.bd/views/npl-and-its-impact-on-the-banking-sector-of-bangladesh-1595343188.
- Jackson, P., Furfine, C., Groeneveld, H., Hancock, D., Jones, D., Perraudin, W., Radecki, L. and Yoneyama, M. (1999), “Capital requirements and bank behaviour: the impact of the Basle Accord”, Citeseer, Vol. 1.
- Jobst, M.A.A., Ong, M.L.L. and Schmieder, M.C. (2013), “A framework for macroprudential bank solvency stress testing: application to S-25 and other G-20 country FSAPs”, IMF Working Paper, International Monetary Fund.
- Jones, D. (2000), “Emerging problems with the Basel Capital Accord: regulatory capital arbitrage and related issues”, Journal of Banking and Finance, Vol. 24 Nos 1-2, pp. 35-58.
- Kashyap, A.K., Rajan, R. and Stein, J.C. (2002), “Banks as liquidity providers: an explanation for the coexistence of lending and deposit-taking”, The Journal of Finance, Vol. 57 No. 1, pp. 33-73.
- Kasman, A., Tunc, G., Vardar, G. and Okan, B. (2010), “Consolidation and commercial bank net interest margins: evidence from the old and new European Union members and candidate countries”, Economic Modelling, Vol. 27 No. 3, pp. 648-655.
- Kennedy, P. (2008), A Guide to Econometrics, John Wiley & Sons, New York City.
- Kosmidou, K., Tanna, S. and Pasiouras, F. (2005), “Determinants of profitability of domestic UK commercial banks: panel evidence from the period 1995-2002”, Money Macro and Finance (MMF) Research Group Conference 2005 45, Money Macro and Finance Research Group.
- Leon, F. (2015), “Measuring competition in banking: a critical review of methods”, Etudes et Documents no. 12, CERDI, Clermont-Ferrand.
- Léon, F. (2015), “Revisiting the role of market power on intermediation costs in Africa”. available at: https://www.researchgate.net/publication/277325953_Revisiting_the_role_of_market_power_on_intermediation_costs_in_Africa
- Lerner, A.P. (1934), “The concept of monopoly and the measurement of monopoly power”, The Review of Economic Studies, Vol. 1 No. 3, pp. 157-175.
- Maudos, J.N. and De Guevara, J.F. (2004), “Factors explaining the interest margin in the banking sectors of the European Union”, Journal of Banking and Finance, Vol. 28 No. 9, pp. 2259-2281.
- Maudos, J. and Solís, L. (2009), “The determinants of net interest income in the Mexican banking system: an integrated model”, Journal of Banking and Finance, Vol. 33 No. 10, pp. 1920-1931.
- Mcshane, R. and Sharpe, I. (1985), “A time series/cross section analysis of the determinants of Australian trading bank loan/deposit interest margins: 1962–1981”, Journal of Banking and Finance, Vol. 9 No. 1, pp. 115-136.
- Moch, N. (2013), “Competition in fragmented markets: new evidence from the German banking industry in the light of the subprime crisis”, Journal of Banking and Finance, Vol. 37 No. 8, pp. 2908-2919.
- Moral, M.L.H. (2012), “Banking sector reforms in Bangladesh: measures and economic outcome”, Bangladesh Journal of Political Economy, Vol. 28 No. 1, pp. 79-122.
- Naceur, S.B. and Kandil, M. (2009), “The impact of capital requirements on banks' cost of intermediation and performance: the case of Egypt”, Journal of Economics and Business, Vol. 61 No. 1, pp. 70-89.
- Panzar, J.C. and Rosse, J.N. (1987), “Testing for ‘monopoly’ equilibrium”, The Journal of Industrial Economics, Vol. 35 No. 4, pp. 443-456.
- Poghosyan, T. (2013), “Financial intermediation costs in low income countries: the role of regulatory, institutional, and macroeconomic factors”, Economic Systems, Vol. 37, pp. 92-110.
- Rahman, M.M., Zheng, C., Ashraf, B.N. and Rahman, M.M. (2018), “Capital requirements, the cost of financial intermediation and bank risk-taking: empirical evidence from Bangladesh”, Research in International Business and Finance, Elsevier, Vol. 44 C, pp. 488-503.
- Repon, A.H. and Islam, Z. (2016), “Competition and concentration in Bangladeshi banking sector: an application of Panzar-Rosse Model”, International Journal of Finance and Banking Studies, Vol. 5 No. 1, pp. 16-29.
- Sarpong-Kumankoma, E., Abor, J., Aboagye, A.Q.Q. and Amidu, M. (2019), “Financial freedom, market power and bank margins in sub-Saharan Africa”, Journal of Financial Regulation and Compliance, Vol. 28 No. 2, pp. 283-299.
- Saunders, A. and Schumacher, L. (2000), “The determinants of bank interest rate margins: an international study”, Journal of International Money and Finance, Vol. 19 No. 6, pp. 813-832.
- Schaeck, K., Cihak, M. and Wolfe, S. (2009), “Are competitive banking systems more stable?”, Journal of Money, Credit and Banking, Vol. 41 No. 4, pp. 711-734.
- Slovik, P. and Cournède, B. (2011), “Macroeconomic impact of basel III”, Working Papers, No. 844, OECD Economics Department.
- Soedarmono, W. and Tarazi, A. (2016), “Competition, financial intermediation, and riskiness of banks: evidence from the Asia-Pacific region”, Emerging Markets Finance and Trade, Vol. 52 No. 4, pp. 961-974.
- Staiger, D. and Stock, J.H. (1997), “Instrumental variables regression with weak instruments”, Econometrica: Journal of the Econometric Society, Vol. 65 No. 3, pp. 557-586.
- Stock, J. and Yogo, M. (2005), “Testing for weak instruments in linear IV regression”, Identification and Inference for Econometric Models, Cambridge University Press, New York, pp. 80-108.
- Sultana, J. and Sharmin, S. (2015), “Basel III: challenges for Bangladesh banking system”, Journal of Business, Vol. 36 No. 3.
- Taskinsoy, J. (2019a), “Ever more financial instability notwithstanding the Basel standards and the IMF's financial sector assessment program”, SSRN, available at: https://ssrn.com/abstract=3328473
- Taskinsoy, J. (2019b), “Higher capital and liquidity regulations of Basel standards have made banks and banking systems become more prone to financial and economic crises”, SSRN, available at: https://ssrn.com/abstract=3401378
- Uddin, S.M.S. and Suzuki, Y. (2015), “The dynamics of concentration and competition in the banking sector of Bangladesh: an empirical investigation”, South Asian Journal of Management, Vol. 22 No. 1, pp. 114-136.
- Valverde, S.C. and Fernández, F.R. (2007), “The determinants of bank margins in European banking”, Journal of Banking and Finance, Vol. 31 No. 7, pp. 2043-2063.
- Wooldridge, J.M. (2015), Introductory Econometrics: A Modern Approach, Cengage learning, Boston, Massachusetts.
- Zheng, C., Rahman, M.M., Begum, M. and Ashraf, B.N. (2017), “Capital regulation, the cost of financial intermediation and bank profitability: evidence from Bangladesh”, Journal of Risk and Financial Management, Vol. 10 No. 2, p. 9.
Market Competition, Capital Regulation and Cost of Financial Intermediation: An Empirical Study on the Banking Sector of Bangladesh
Abstract:
Purpose - This study aims to examine the impact of market competition, and capital regulation on the cost of financial intermediation of banks of the Bangladesh banking industry.
Design/methodology/approach - This study has used a balanced panel dataset comprised of 340 firm-year observations for 34 commercial banks in the Bangladesh banking industry from 2011 to 2020. The Prais Winsten panel estimator has been used to assess the impact of market competition and capital regulation on the cost of financial intermediation of banks.
Findings - Based on the regression results, this study has documented that greater market competition results in a lower cost of financial intermediation for banks. Similarly, an increase in the regulatory capital of banks increases the cost of financial intermediation of banks. The main findings of this study are found robust by using alternative proxies for the cost of financial intermediation, market competition and capital regulation. The regression results also suggest that private commercial banks tend to have a higher cost of financial intermediation than state-owned commercial banks.
Research limitations/implications - The regulatory reforms should aim to foster sustainable and optimal market competition for the Bangladesh banking industry to regulate the market power of banks to reduce the cost of financial intermediation. The regulatory authority of Bangladesh should find the optimal policy measures for implementing the capital regulation in the banking industry which would reduce the cost of financial intermediation margin of banks.
Originality/value - Unlike previous studies which have used structural market competition measures, this study has used non-structural market competition measures to assess the relationship between market competition and cost of financial intermediation in the Bangladesh banking industry.