Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006)
This paper examines the relationship between risk, concentration and the exercise of market power by banking institutions. We use monthly balance-sheet and interest rate data for the Colombian banking system from 1997 to 2006. The evidence shows that, in the face of high risk, banks transfer a large...
- Autores:
-
Tovar Mora, Jorge Andrés
Jaramillo Herrera, Christian Rafael
Hernández, Carlos Arturo
- Tipo de recurso:
- Work document
- Fecha de publicación:
- 2007
- Institución:
- Universidad de los Andes
- Repositorio:
- Séneca: repositorio Uniandes
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.uniandes.edu.co:1992/8181
- Acceso en línea:
- http://hdl.handle.net/1992/8181
- Palabra clave:
- Banking
Market power
Risk
Concentration
Intermediation margins
Bancos - Colombia - 1997-2006
Mercado de valores - Colombia - 1997-2006
Riesgo crediticio - Colombia - 1997-2006
Concentración del capital - Colombia - 1997-2006
G21, G34, G38, L11
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
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Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores.http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Tovar Mora, Jorge Andrés10750500Jaramillo Herrera, Christian Rafael0e5bbbd4-0361-44cc-97f3-d7c21330666d500Hernández, Carlos Arturo86666098-d23d-4471-91d3-4a343a781c0e5002018-09-27T16:51:05Z2018-09-27T16:51:05Z20071657-5334http://hdl.handle.net/1992/81811657-719110.57784/1992/8181instname:Universidad de los Andesreponame:Repositorio Institucional Sénecarepourl:https://repositorio.uniandes.edu.co/This paper examines the relationship between risk, concentration and the exercise of market power by banking institutions. We use monthly balance-sheet and interest rate data for the Colombian banking system from 1997 to 2006. The evidence shows that, in the face of high risk, banks transfer a larger share of risk to customers through higher intermediation margins. The result suggests that systemic risk acts as a "collusion" device for banks: while high concentration is not enough to have collusion, the true effects of high market concentration on interest rates' mark-ups emerge when the system is under stress.Este trabajo explora la relación entre riesgo, concentración y el ejercicio de poder de mercado en el sector financiero. Se utiliza información mensual de balances financieros de instituciones bancarias colombianas en el periodo 1997 a 2006. La evidencia muestra que en periodos de alto riesgo los bancos tienden a transferir a sus clientes una proporción mayor del riesgo a través de los márgenes de intermediación. Esto sugiere que el riesgo sistémico actúa como un mecanismo colusivo para los bancos. Una alta concentración de mercado no es suficiente para que haya colusión: es en situaciones de alto riesgo sistémico que la concentración se traduce en ejercicio de poder de mercado.33 páginasapplication/pdfengUniversidad de los Andes, Facultad de Economía, CEDEDocumentos CEDE No. 27 Noviembre de 2007https://ideas.repec.org/p/col/000089/004385.htmlRisk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006)Riesgo, concentración y poder de mercado en el sistema financiero : el caso colombiano (1997-2006)Documento de trabajoinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/resource_type/c_8042http://purl.org/coar/version/c_970fb48d4fbd8a85Texthttps://purl.org/redcol/resource_type/WPBankingMarket powerRiskConcentrationIntermediation marginsBancos - Colombia - 1997-2006Mercado de valores - Colombia - 1997-2006Riesgo crediticio - Colombia - 1997-2006Concentración del capital - Colombia - 1997-2006G21, G34, G38, L11Facultad de EconomíaPublicationORIGINALdcede2007-27.pdfdcede2007-27.pdfapplication/pdf569671https://repositorio.uniandes.edu.co/bitstreams/21e70b2f-107f-4c08-aafc-02a5e2cf41bd/downloadc6155f8c8543d9d409561dc48b2a7da1MD51TEXTdcede2007-27.pdf.txtdcede2007-27.pdf.txtExtracted texttext/plain56684https://repositorio.uniandes.edu.co/bitstreams/5e73df4c-e462-4188-914f-de96d66040a0/downloadba6e8e921b98b4895a5c944dd43d1bafMD54THUMBNAILdcede2007-27.pdf.jpgdcede2007-27.pdf.jpgIM Thumbnailimage/jpeg3649https://repositorio.uniandes.edu.co/bitstreams/4ada4361-bf56-4a90-b59c-0912d02057fe/downloadcd32bdebe470e9017cdb9e346c93fa9dMD551992/8181oai:repositorio.uniandes.edu.co:1992/81812024-06-04 15:41:43.001http://creativecommons.org/licenses/by-nc-nd/4.0/open.accesshttps://repositorio.uniandes.edu.coRepositorio institucional Sénecaadminrepositorio@uniandes.edu.co |
| dc.title.none.fl_str_mv |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) |
| dc.title.alternative.none.fl_str_mv |
Riesgo, concentración y poder de mercado en el sistema financiero : el caso colombiano (1997-2006) |
| title |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) |
| spellingShingle |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) Banking Market power Risk Concentration Intermediation margins Bancos - Colombia - 1997-2006 Mercado de valores - Colombia - 1997-2006 Riesgo crediticio - Colombia - 1997-2006 Concentración del capital - Colombia - 1997-2006 G21, G34, G38, L11 |
| title_short |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) |
| title_full |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) |
| title_fullStr |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) |
| title_full_unstemmed |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) |
| title_sort |
Risk, concentration and market power in the banking industry : evidence from the Colombian System (1997-2006) |
| dc.creator.fl_str_mv |
Tovar Mora, Jorge Andrés Jaramillo Herrera, Christian Rafael Hernández, Carlos Arturo |
| dc.contributor.author.none.fl_str_mv |
Tovar Mora, Jorge Andrés Jaramillo Herrera, Christian Rafael Hernández, Carlos Arturo |
| dc.subject.keyword.none.fl_str_mv |
Banking Market power Risk Concentration Intermediation margins |
| topic |
Banking Market power Risk Concentration Intermediation margins Bancos - Colombia - 1997-2006 Mercado de valores - Colombia - 1997-2006 Riesgo crediticio - Colombia - 1997-2006 Concentración del capital - Colombia - 1997-2006 G21, G34, G38, L11 |
| dc.subject.armarc.none.fl_str_mv |
Bancos - Colombia - 1997-2006 Mercado de valores - Colombia - 1997-2006 Riesgo crediticio - Colombia - 1997-2006 Concentración del capital - Colombia - 1997-2006 |
| dc.subject.jel.none.fl_str_mv |
G21, G34, G38, L11 |
| description |
This paper examines the relationship between risk, concentration and the exercise of market power by banking institutions. We use monthly balance-sheet and interest rate data for the Colombian banking system from 1997 to 2006. The evidence shows that, in the face of high risk, banks transfer a larger share of risk to customers through higher intermediation margins. The result suggests that systemic risk acts as a "collusion" device for banks: while high concentration is not enough to have collusion, the true effects of high market concentration on interest rates' mark-ups emerge when the system is under stress. |
| publishDate |
2007 |
| dc.date.issued.none.fl_str_mv |
2007 |
| dc.date.accessioned.none.fl_str_mv |
2018-09-27T16:51:05Z |
| dc.date.available.none.fl_str_mv |
2018-09-27T16:51:05Z |
| dc.type.spa.fl_str_mv |
Documento de trabajo |
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http://purl.org/coar/version/c_970fb48d4fbd8a85 |
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info:eu-repo/semantics/workingPaper |
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http://purl.org/coar/resource_type/c_8042 |
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Text |
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https://purl.org/redcol/resource_type/WP |
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http://purl.org/coar/resource_type/c_8042 |
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1657-5334 |
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http://hdl.handle.net/1992/8181 |
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1657-7191 |
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10.57784/1992/8181 |
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reponame:Repositorio Institucional Séneca |
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http://hdl.handle.net/1992/8181 |
| dc.language.iso.none.fl_str_mv |
eng |
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eng |
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Documentos CEDE No. 27 Noviembre de 2007 |
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https://ideas.repec.org/p/col/000089/004385.html |
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info:eu-repo/semantics/openAccess |
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openAccess |
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33 páginas |
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application/pdf |
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Universidad de los Andes, Facultad de Economía, CEDE |
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Universidad de los Andes, Facultad de Economía, CEDE |
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Universidad de los Andes |
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