Regional Competition in US Banking – Trends and Determinants

Alexander Erler (), Horst Gischer () and Bernhard Herz
Additional contact information
Alexander Erler: Department of Business, Economics and Law, University of Bayreuth
Horst Gischer: Faculty of Economics and Management, Otto-von-Guericke-University Magdeburg

No 170008, FEMM Working Papers from Otto-von-Guericke University Magdeburg, Faculty of Economics and Management

Abstract: Competition in the US banking industry as measured by the Lerner Index has on average increased substantially during the last decade. At the same time, regional differences in competition on the state level have decreased considerably. Based on a dynamic panel framework we find that these developments are mainly driven by industry specific factors such as the costs to income ratio. The empirical evidence indicates that inefficiency and the Lerner index are significant negatively correlated. Macroeconomic conditions appear to have supported these trends in competition, however, to a somewhat lesser extent.

Keywords: competition; US banking; efficiency; regional markets (search for similar items in EconPapers)
JEL-codes: D40 G21 L19 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2017-05
New Economics Papers: this item is included in nep-ban, nep-com, nep-eff and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:mag:wpaper:170008

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