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Title: Post-deregulation developments in financial services : the case of the banking industry in Argentina
Author: Delfino, María Eugenia
ISNI:       0000 0001 3421 6393
Awarding Body: University of Warwick
Current Institution: University of Warwick
Date of Award: 2003
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This thesis studies post-deregulation developments in financial services by examining the banking industry in Argentina during the 1990s. The main interests of this study lie in the analysis of the effects of consolidation in the banking industry on market power, cost economies and economic welfare, the relationship between ownership structure and economic efficiency and the consequences of consolidation and banks' geographic diversification on multimarket contact and market entry dynamics. Chapter 1 introduces the main issues discussed in the thesis and Chapter 2 describes the contextual industry framework and the postderegulation developments that form the basis for the empirical analysis undertaken in the remaining chapters. Chapter 3 explores the effects of consolidation on market power, cost economies and economic welfare using bank-level data for Argentine retail stock banks over the period 1993-2000 to estimate a cost-function based model incorporating deposits- and loans-market pricing behaviour. The results provide evidence of market power exploitation in the market for loans but not in the market for deposits and also the presence of significant cost economies. The findings further show an increase in consumers’ surplus and banks’ profits over the period possibly associated with the exploitation of scale economies and technical change, which may have counteracted the effect of market power. Chapter 4 uses different approaches to measure cost and profit efficiency as well as scale economies and technical change for different ownership types in the banking industry over the 1993-2000 period. The results indicate that within the domestic-owned banking sector, stock banks seem to be more cost efficient than mutual and public-owned banks, that all banks operate under increasing returns to scale but that only stock banks benefited from technical progress. The findings also reveal that domestic-owned stock banks appear to be as efficient as foreign-owned banks in terms of both costs and profits. The results also indicate an increase in efficiency for all ownership types over the sample period, however, the most significant improvement appear to be that of mutual and public-owned banks. Chapter 5 examines the impact of multimarket contact on entry into new markets in the banking industry over the 1994-2000 period using survival analysis techniques. The results suggest that banks with large asset bases and greater experience arc more likely to expand into new markets when the level of demographic variables such as population density, demand or market growth arc favourable. The findings tentatively imply that multimarket contact reduces the likelihood of entry into new markets and that other factors such as market dominance and market concentration also have a negative impact on entry. Finally, the results reveal that strategic similarity among multimarket competitors possibly amplifies the negative effect of multimarket contact on the hazard of entry. Chapter 6 summarises the findings of the thesis and discusses avenues for future research.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available
Keywords: HD Industries. Land use. Labor ; HG Finance