TY  - JOUR
TT  - Competition and Efficiency: An Empirical Analysis on the Banking Industry of the European Union
AU  - Ekinci, Ramazan
AU  - Kök, Recep
PY  - 2017
DA  - December
DO  - 10.18074/ckuiibfd.338148
JF  - Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
PB  - Çankırı Karatekin Üniversitesi
WT  - DergiPark
SN  - 1308-5549
SP  - 171
EP  - 200
VL  - 7
IS  - 2
KW  - Et
KW  - Rek
KW  - SFA
N2  - The principal aim of thisstudy is to test the hypothesis of “competition-efficiency”. It is known thatthe decisions on increasing strength against the crises in the banking systemof the European Union (EU) increase competition and cost efficiency. Accordingto the hypothesis of “competition-efficiency”, competition in financial marketscauses increasing of efficiency and decreasing of costs. The sample in thisstudy is 26 countries of the EU and in the period of 2006-2014. Cost efficiencyscores are measured by using the Panel Stochastic Frontier Analysis, and it isseen that cost efficiency decreases within the debt crisis after 2010. Besidescompetitive advantage is measured with the method of Lerner index, and it iswitnessed that the competitive advantage increases in the banking system of theEU. With regard to the aim of the study, Granger causality between competitionand efficiency is examined, and there is a positive causality from competitionto efficiency, but also there is not causality from efficiency to competition.According to these findings, the hypothesis of Quiet Life is not accepted forthe banking system of the EU.
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UR  - https://doi.org/10.18074/ckuiibfd.338148
L1  - https://dergipark.org.tr/tr/download/article-file/390831
ER  -