A New Measure of Competition in the Financial Industry - The Performance-Conduct-Structure Indicator (Hardcover)

The 2008 credit crisis started with the failure of one large bank: Lehman Brothers. Since then the focus of both politicians and regulators has been on stabilising the economy and preventing future financial instability. At this juncture, we are at the last stage of future-proofing the financial sector by raising capital requirements and tightening financial regulation. Now the policy agenda needs to concentrate on transforming the banking sector into an engine for growth. Reviving competition in the banking sector after the state interventions of the past years is a key step in this process. This book introduces and explains a relatively new concept in competition measurement: the performance-conduct-structure (PCS) indicator. The key idea behind this measure is that a firm's efficiency is more highly rewarded in terms of market share and profit, the stronger competitive pressure is. The book begins by explaining the financial market's fundamental obstacles to competition presenting a brief survey of the complex relationship between financial stability and competition. The theoretical contributions of Hay and Liu and Boone provide the theoretical underpinning for the PCS indicator, while its application to banking and insurance illustrates its empirical qualities. Finally, this book presents a systematic comparison between the results of this approach and (all) existing methods as applied to 46 countries, over the same sample period. This book presents a comprehensive overview of the knowns and unknowns of financial sector competition for commercial and central bankers, policy-makers, supervisors and academics alike.

General

Imprint:	Routledge
Country of origin:	United Kingdom
Series:	Routledge International Studies in Money and Banking
Release date:	August 2014
First published:	2015
Editors:	Jacob Bikker • Michiel Van Leuvensteijn
Dimensions:	234 x 156 x 19mm (L x W x T)
Format:	Hardcover
Pages:	228
ISBN-13:	978-0-415-87040-5
Categories:	Books > Business & Economics > Business & management > Business competition Books > Business & Economics > Industry & industrial studies > Service industries > Financial services industry Promotions
LSN:	0-415-87040-2
Barcode:	9780415870405

Is the information for this product incomplete, wrong or inappropriate? Let us know about it.

Does this product have an incorrect or missing image? Send us a new image.

Is this product missing categories? Add more categories.

Review This Product

No reviews yet - be the first to create one!