What determines interbank competition? And why should we care?
Christopher L. Colvin
What the paper says
Abstract. Traditional measures of competition are inappropriate for banking markets and there exists no consensus alternative measure. As a direct consequence, the empirical relationship between interbank competition and financial stability remains unclear. This paper adopts ideas from the new industrial organisation literature to measure interbank competition in the early twentieth‐century Dutch rural market for small‐scale deposits using newly collected data. It finds that transaction and information switching costs are both important sources of banks' market power.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.00 × 0.4 = 0.00 |
| M · momentum | 0.20 × 0.15 = 0.03 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.