Do Public Banks Compete with Private Banks? Evidence from Concentrated Local Markets in Brazil

作者：Coelho Christiano A^*; De Mello Joao M P; Rezende Leonardo

来源：Journal of Money, Credit, and Banking, 2013, 45(8): 1581-1615.

DOI：10.1111/jmcb.12063

• L10
• L13
• L33
• banking industry
• public versus private ownership
• effect of entry

We measure the competitive effect of public banks in concentrated local markets in Brazil using branch location patterns. We employ variation in market size, number, and identity of competitors to determine how the conduct of private banks is affected by the entry of a public bank. We find that the market size needed to sustain a private bank branch is 35% larger if a private competitor is present and is not significantly affected by the presence of a public bank. These results suggest that the presence of a public bank does not affect conduct of private banks.

• 出版日期2013-12