Please use this identifier to cite or link to this item:
Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Bank competition, risk taking and productive efficiency: Evidence from Nigeria’s banking reform experiments
Author(s): Zhao, Tianshu
Murinde, Victor
Contact Email:
Citation: Zhao T & Murinde V (2009) Bank competition, risk taking and productive efficiency: Evidence from Nigeria’s banking reform experiments. Stirling Economics Discussion Paper, 2009-23.
Keywords: bank competition
bank efficiency
Nigeria Foreign economic relations.
Nigeria Economic conditions.
Competition, International
JEL Code(s): G21: Banks; Depository Institutions; Micro Finance Institutions; Mortgages
D43: Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
C51: Model Construction and Estimation
Issue Date: 1-Nov-2009
Date Deposited: 11-Dec-2009
Series/Report no.: Stirling Economics Discussion Paper, 2009-23
Abstract: We propose a three-stage procedure for investigating the interrelationships among bank competition, risk taking and efficiency. The procedure is applied to Nigeria’s banking reforms (1993-2008). Stage I measures bank productive efficiency, using Data Envelopment Analysis, and the evolution of bank competition, using Conjectural Variations (CV) methods. Stage II uses the CV estimates to test whether regulatory reforms influence bank competition. Stage III investigates the impact of the reforms and concomitant changes in competition on bank behaviour. The evidence suggests that deregulation and prudential re-regulation influence bank risk taking and bank productive efficiency directly (direct impact) and via their impact on competition (indirect impact). Further, it is found that as competition increases, excessive risk taking decreases and efficiency increases. Overall, the evidence affirms policies that foster bank competition, at least in the Nigerian context.
Type: Working Paper
Affiliation: Economics
University of Birmingham

Files in This Item:
File Description SizeFormat 
SEDP-2009-23-Zhao-Murinde.pdfFulltext - Accepted Version285.92 kBAdobe PDFView/Open

This item is protected by original copyright

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

The metadata of the records in the Repository are available under the CC0 public domain dedication: No Rights Reserved

If you believe that any material held in STORRE infringes copyright, please contact providing details and we will remove the Work from public display in STORRE and investigate your claim.