%0 Journal Article
%T Banking Sector Competition in the Panzar-Rosse Framework and Net Interest Margins: An Empirical Analysis Using the General Method of Moments
%A Mustafa
%A Arben
%A To£żi
%A Valentin
%J -
%D 2018
%R 10.15179/ces.20.1.1
%X Sa£żetak This paper provides empirical evidence on the determinants of net interest margins in Central, Eastern, and Southeastern European countries (CESEE) during the period 1999¨C2009, with a particular focus on the relationship between banking sector competition and net interest margins. Using country-level Panzar-Rosse H-statistic estimates as a measure of competition, and the General Method of Moments, it has been determined that banking sector competition had a negative impact on net interest margins. In order to check for consistency, alternative measures of competition, such as the Lerner index and the Herfindahl-Hirschman index, have also been used. The results appear consistent and suggest that higher market power is associated with higher interest margins. A number of interactions have been used to check for the impact of competition when interacted with other variables. The study also provides evidence on the impact of other bank-specific, macroeconomic, and institutional variables on net interest margins
%K bank competition
%K net interest margins
%K Panzar-Rosse H-statistic
%K General Method of Moments
%U https://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=299080