Competition is generally considered as a positive driving force in many
sectors as it enhances efficiency and promotes innovation. In the financial
sector, countries are implementing reforms that increase competition. This
study aims to examine the relationship between competition and financial
soundness employing Panel ARDL pooled mean group (PMG) estimations in 16
emerging countries’ banking sectors for 1996-2015 periods. Results show that
competition and financial soundness are moving together in the short and
long-run. Also, it is found that competition has a negative effect on financial
soundness in the short and long-run. Findings tend to support
“competition-fragility” approach in emerging country banking sectors.
Primary Language | Turkish |
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Journal Section | Articles |
Authors | |
Publication Date | December 31, 2018 |
Submission Date | August 1, 2018 |
Published in Issue | Year 2018 Volume: 13 Issue: 3 |