Pouvoir de marché et efficience : Cas du secteur bancaire de l'UEMOA
Keywords:
banking efficiency, market power, concentration, competitionAbstract
In this article, we investigate the relationship between market power and cost efficiency using a sample of 49 banks drawing from seven West African Economic and Monetary Union (WAEMU) countries for the period 2003-2014. We used a panel data analysis and 2SLS IV estimation for our empirical investigation. We find that market power reduces the cost banking efficiency in WAEMU's countries through an increase of banking operating costs. This is consistent with the Quiet Life Hypothesis, which established that concentrated markets incites to an under optimal behaviors harmful to the banking profitability. The results have important regulation banking policy implications for WAEMU.
References
Amidu, M. (2011). “Banking market structure and bank intermediation strategies in emerging markets: Three essays”. PHD thesis, Faculty of business an law School of Management University of Southampton.
View in Google Scholar
Ary Tanimoune, N. (2010). Performances bancaires dans l’union économique et monétaire ouest africaine : les effets « taille » et « structure actionnariale » sont-ils pertinents ? Revue économique et monétaire N° - JUIN 2009, BCEAO, Dakar.
View in Google Scholar
Ary Tanimoune, N. (2003). Les déterminants de la profitabilité des banques dans l’UEMOA : une analyse sur données de Panel. Notes d’information et Statistiques- N°539-Août/Septembre 2003 - Études et Recherche, BCEAO.
View in Google Scholar
Avom, D. et Eyeffa Ekomo, S. M. L. (2007). Quinze ans de restructuration bancaire dans la CEMAC : qu’avons-nous appris ? Revue d’économie financière, n° 189.
View in Google Scholar
Bain, J.S. 1956. Barriers to New Competition. Cambridge: Harvard Press. BCEAO, Annuaires statistiques, divers numéros.
View in Google Scholar
Berger, A. et Hannan, T. (1998). The efficiency cost of market power in the banking industry: A test of the “quiet life” and related hypotheses. Review of Economics and Statistics, 80(3): pp. 454-465.
View in Google Scholar
Bonin J.P., I. Hasan, P. Wachtel (2005). Bank Performance, Efficiency and Ownership in Transition Countries. Journal of Banking & Finance, 2005, vol (29), pp. 31-53.
View in Google Scholar
Boyd, J.H., De Nicolo, G. (2005). The Theory of Bank Risk Taking and Competition Revisited. Journal of Finance 60 (3): pp. 1329-1343.
View in Google Scholar
Chen, C. (2009). Bank efficiency in Sub-Saharan African middle-income countries. IMF Working Paper, WP/09/14. International Monetary Fund (IMF).
View in Google Scholar
Chirwa, E. W. (2003). Determinants of commercial bank’s profitability in Malawi: A co-integration approach. Apllied Financial Economics, 13: pp. 565-571.
View in Google Scholar
Delis, M., Tsionas, E., 2009. The joint estimation of bank-level market power and efficiency. Journal of Banking and Finance 33: pp. 1842-1850.
View in Google Scholar
Demirguc-Kunt, A. et Huizinga, H. (1999). Market discipline and financial safety net design. Policy Research Working Paper Series 2183, The World Bank.
View in Google Scholar
Demsetz, H. (1973). Industry Structure, Market Rivalry, and Public Policy. Journal of Law & Economics, University of Chicago Press, vol. 16(1): pp. 1-9, April.
View in Google Scholar
Dietsch Michel and Lozano-Vivas Ana, (2000). How the environment determines banking efficiency: A comparison between French and Spanish industries. Journal of banking and Finance n°24.
View in Google Scholar
Dietsch, M. (1992). Quel modèle de concurrence dans l’industrie bancaire? Revue Économique, Programme National Persée, vol. 43(2) : pp. 229-260.
View in Google Scholar
Evan Kraft and Dogan Tirtiroglu (1998). Bank Efficiency in Croatia: A Stochastic-Frontier Analysis. Journal of Comparative Economics, 1998, vol. 26, issue 2: pp. 282-300.
View in Google Scholar
Flamini, V., McDonald, C. A., and Schumacher, L. B. (2009). The Determinants of Commercial Bank Profitability in Sub-Saharan Africa. IMF Working Papers: pp. 1-30.
View in Google Scholar
Fries S., Taci A. (2005). Cost efficiency of banks in transition: Evidence from 289 banks in 15 post-communist countries. Journal of Banking and Finance 29: pp. 55-81.
View in Google Scholar
Fungáčová, Z., Solanko, L., and Weill, L. (2014). Does competition influence the bank lending channel in the Euro area? Journal of Banking and Finance, 31: pp. 296-314.
View in Google Scholar
Gilbert, R. A. and Zaretsky, A. M. (2003). Banking antitrust: Are the assumptions still valid? Federal Reserve Bank of Saint Louis Review, 85 (6): pp. 29-52.
View in Google Scholar
Gilbert, R. A. (1984). Bank market structure and competition: A survey. Journal of Money, Credit and Banking 16: pp. 617-644.
View in Google Scholar
Grigorian and Manole (2002). Determinants of commercial bank performance in transition: an apllication of data Envelopment analysis. IMF Working paper WP/02/146
View in Google Scholar
Hannan, T. H. (1991). Foundations of the structure-conduct-performance paradigm in banking. Journal of Money, Credit and Banking, 23 (1): pp. 68-84.
View in Google Scholar
Hermalin, B. (1992). The effects of competition on executive behavior. The RAND Journal of Economics, pp. 350-365.
View in Google Scholar
Hicks, J. (1935). Annual survey of economic theory: The theory of monopoly. Econometrica, 3: pp. 1–20.
View in Google Scholar
Jondrow, J., Lovell, C.A.K, Materov, I.S. and Schmidt, P (1982). On the estimation of technical inefficiency in the stochastic frontier production function model. Journal of Econometrics 19: pp. 233-238. North-Holland Publishing Company.
View in Google Scholar
Joseph, A. (2002). La réforme du secteur financier en Afrique. Document technique du Centre de développement de l’OCDE, OCDE, Paris.
View in Google Scholar
Kablan, S., (2009b). Mesure de la performance des banques dans les pays en voie de développement : le cas de l’UEMOA. African Development Review, Vol. 21, No. 2 : pp. 367-399.
View in Google Scholar
Kablan, S. (2009a). Banking efficiency and financial development in sub-saharanafrica. The African Finance Journal, 21 (2) : pp.1-26.
View in Google Scholar
Kablan S. (2007), « Mesure de la Performance des Banques dans les Pays en Développement : le Cas de l’UEMOA.Communication à la Conférence économique africaine, 15-17 novembre 2007, Addis-Abeba.
View in Google Scholar
Kirkpatrick, C., V. Murinde, and M. Tefula (2008). The Measurement and Determinants of X-efficiency in Commercial banks in Sub-Saharan Africa. The European Journal of Finance, Vol. 14 Issue 7: pp. 625-39.
View in Google Scholar
Klein, M. (1971). A theory of the banking firm. Journal of Money, Credit, and Banking, 3: pp. 205-218.
View in Google Scholar
Koetter, M., Kolari, J. et Spierdijk, L. (2012). Enjoying the quiet life under deregulation? Evidence from adjusted lerner indices for us banks. The Review of Economics and Statistics, Vol. 94, No. 2 (May 2012), pp. 462-480.
View in Google Scholar
Lapteacru, I. et Lahet, D. (2014). Efficience et pouvoir de marché des banques en Thaïlande suite aux crises financières. Revue Économique, 5 (vol. 65) : pp. 675-698.
View in Google Scholar
Lapteacru, I. et Nys, E. (2011). L’impact de la concurrence sur l’efficience des banques : Le cas des PECO. Revue Économique, 62 (2) : pp. 313-330.
View in Google Scholar
Leon F. (2012). Effet de la concurrence sur l’efficience bancaire en Afrique: Le cas de l’UEMOA. Études et Document de Travail E2012.2. CERDI.
View in Google Scholar
Lerner, A. (1934). The concept of monopoly and the measurement of monopoly power. The Review of Economic Studies, 1 (3) : pp. 157-175.
View in Google Scholar
Maudos, J. et De Guevara, J. (2007). The cost of market power in banking: Social welfare loss vs. cost inefficiency. Journal of Banking & Finance, 31(7) : pp. 2103-2125.
View in Google Scholar
McDonald, C. A. and Schumacher, L. (2007). Financial deepening in Sub- Saharan Africa: Empirical evidence on the role of creditor rights protection and information sharing. IMF Working Papers, 07/203: pp. 1-25.
View in Google Scholar
Monti, M. (1972). “Deposit, credit, and interest rate determination under alternative bank objectives”, in Mathematical Methods in Investment and Finance, G.P. Szego and K. Shell (eds.), Amsterdam, North-Holland.
View in Google Scholar
Nubukpo, K (2007b). Politique monétaire et servitude volontaire : la gestion du Franc CFA par la BCEAO. Politique africaine N°105, Karthala, Paris, mars 2007.
View in Google Scholar
Nubukpo K. (2002). L’Impact de la variation des Taux d’intérêt directeurs de la BCEAO sur l’Inflation et la Croissance dans l’UEMOA. Etudes et Recherches, Notes d’Information et Statistiques de la BCEAO (NIS) n° 526 juin.
View in Google Scholar
Okeahalam, C. C. (2002b). Concentration in the banking sector of the common monetary area of Southern Africa. In Conference on Development Issues in the New Economy. University of Cape Town, Cape Town.
View in Google Scholar
Okeahalam, C. (2002a). Struture and conduct in the commercial banking sector of South Africa. Trade and Industrial Policy Strategies.
View in Google Scholar
Okeahalam, C. (1998). An analysis of the price-concentration relationship in the Botswana commercial banking industry. Journal of African Finance and Economic Development, 3: pp. 65-84.
View in Google Scholar
Ouédraogo, S. (2012). Concentration bancaire, profitabilité et développement financier bancaires dans l’UEMOA. Revue Economique et Monétaire BCEAO, N° 12 Décembre 2012.
View in Google Scholar
Peltzman S. (1977). The Gains and Losses from Industrial Concentration. Journal of Law and Economics, 20, pp. 392-415.
View in Google Scholar
Commission bancaire de l’UEMOA. Bilans et comptes de résultats des banques et établissements financiers de l’UMOA, divers numéros de 2000 à 2014.
View in Google Scholar
Ryan, R., M., O’Toole, C., M., McCann, F., (2014). Does bank market power affect SME financing constraints? Journal of Banking & Finance 49 : pp. 495-505.
View in Google Scholar
Selten, R. (1986). Elementary theory of slack-ridden imperfect competition. In New developments in the analysis of market structure: proceedings of a conference held by the International Economic Association in Ottawa, Canada, page 126. The MIT Press.
View in Google Scholar
Solis, L. and Maudos J. (2008). Les coûts sociaux du pouvoir du marché bancaire: les preuves du Mexique. Journal of Comparative Economics, 36 (3), pp. 467-488.
View in Google Scholar
Tirtiroglu, D., Daniels, K.N., Tirtigoglu, E. (2005). Deregulation, Intensity of Competition, Industry Evolution, and the Productivity Growth of U.S. Commercial Banks. Journal of Money, Credit and Banking 37 (2): pp. 339-360.
View in Google Scholar
Turk Ariss, R. (2010). On the implications of market power in banking: Evidence from developing countries. Journal of Banking & Finance, 34(4): pp. 765–775.
View in Google Scholar
Williams, J. 2012. Efficiency and market power in Latin American banking. Journal of Financial Stability 8: pp. 263-273.
View in Google Scholar
Yang, J., Shao, S. (2016). Impact of bank competition on the bank lending channel of monetary transmission: Evidence from China. International Review of Economics and Finance, 43 (2016): pp. 468-481.
View in Google Scholar
Zhao, T. and Murinde, V. (2011). Bank deregulation and performance in Nigeria. African Development Review, 26 (1): pp. 30-43.
View in Google Scholar
Downloads
Published
Issue
Section
License
Copyright (c) 2018 Poznań University of Economics and Business
This work is licensed under a Creative Commons Attribution 4.0 International License.
