, PhD Student, Department of Business, Trade and Stock Exchanges, Chernivtsi National University of Yuriy Fedkovych, Chernivtsi, Ukraine
, MS, Lecturer in Higher College of Technology, Accounting and Finance, Sultanate of Oman
The article substantiates that when developing strategic guidelines for investing, investors from abroad should monitor the Ukrainian banking services market, which allows to assess barriers to entry and exit from the market, the level of saturation of banking services, and also analyze the dynamics of competitors’ behavior. A conclusion is drawn about the different levels of competition in different segments of the Ukrainian banking market in the context of state, foreign and private banks. The results of the calculations showed that by the end of 2016, state banks were monopolists in the market of deposit services for individuals, the market of credit services of individuals, the market of commission income; foreign banks in the market of credit services for individuals, private banks in the market of deposit services for legal entities, securities market.
Keywords: foreign investors, state banks, banks with foreign capital, private banks, banking services market of Ukraine.
JEL Classification: F3, F21.
Cite as: Grebeniuk N., Jinan Mehdi M. (2017). Features of Foreign Investors Evaluating the Level of Competition in the Banking Market. Financial Markets, Institutions and Risks, 1(3), 99-107. DOI: 10.21272/fmir.1(3).99-107.2017
- Baumol W. (1982). Contestable Markets: An Uprising in the Theory of Industry Structure. The American Economic Review, 72, 1-15.
- Beck T. et al. (2006). Bank concentration, competition, and crises: First results. Journal of Banking and Finance, 30, 1581-1603.
- Carletti, E. et al. (2007). Bank mergers, competition, and liquidity. Journal of Money, Credit and Banking, 39, 1067-1105.
- DeYoung, R. et al. (1998). Impact of Out-of-State Entry on the Cost Efficiency of Local Commercial Banks. Journal of Economics and Business, 50, 191-203.
- Geroski P. A. (1988). In pursuit of monopoly power: recent quantitative work in industrial economics. Journal of Applied Econometrics, 3, 107-123.
- How Does Bank Competition Affect Systemic Stability (2012). The World Bank, Policy Research Working Paper 5981. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/3267/ WPS5981.pdf?sequence=1&isAllowed=y.
- Jayaratne, J. et al. (1998). Entry Restrictions, Industry Evolution, and Dynamic Efficiency: Evidence from Commercial Banking, Journal of Law and Economics, 41, 239-273.
- Koetter, M. et al. (2012). Enjoying the Quiet Life Under Deregulation? Evidence from Adjusted Lerner Indices for US Banks. Review of Economics and Statistics, 94, 462-480.
- Koskela, E. et al. (2000). Is there a tradeoff between bank competition and financial fragility? Journal of Banking and Finance, 24, 1853-1873.
- Pokaznyky finansovoi zvitnosti bankiv Ukrainy za period 2013-2016 rr. Natsionalnyi bank Ukrainy [Indicators of financial reporting of Ukrainian banks for the period of 2013-2016. The National Bank of Ukraine]. [Online]. Retrieved from https://bank.gov.ua/control/uk/publish/ article?art_id= 34661442&cat_id=34798593.
- Rashkovan V. et al. (2015). Concentration of the banking system of Ukraine, Visnyk Natsionalnoho banku Ukrainy, 234, 6-38.
- Zherdetska L. V. (2009). Nestrukturni modeli otsinky konkurentsii na rynku bankivskykh produktiv ta posluh Ukrainy [Non-structural models for assessing competition in the market of banking products and services in Ukraine]. 12(90), 4-53.