| The aim of this paper is to analyze bank competition in Russia by measuring
the market power of Russian banks and its determinants over the period 2001-2006 with
the Lerner index. We find that bank competition has only slightly improved during the period
studied. The mean Lerner index for Russian banks is of the same magnitude as those observed
in developed countries, which suggests that the Russian banking industry is not plagued by
weak competition. Furthermore, we find no greater market power for state-controlled banks
nor less market power for foreign-owned banks. Finally, our analysis of the determinants of
market power enables the identification of several factors that influence competition, including
market concentration and risk as well as the nonlinear influence of size. |
Abstract |
