Browsing by Subject "vähittäispankkitoiminta"

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  • Vajanne, Laura (2007)
    Bank of Finland. Financial market report 1
    Findings of a European Commission study show that in the European retail banking market, several barriers to competition exist, which raise retail banking costs to companies and consumers. High profitability of banking, concentrated markets and evidence of entry barriers give reason to suspect that in some EU countries, banks are able maintain a fairly high level of fees charged to consumers and small firms.
  • Johnson, Leslie T. (1990)
    Bank of Finland Research Discussion Papers 25/1990
    The future deve1opment, of retail banking and the structural changes that are occurring, and are expected to occur after 1992, are two issues which dominate current discussions concerning banking in Europe. Both issues are inter-related and, of course, both have imp1ications for bank regu1ation. In an attempt to contribute to the debate, this paper presents survey data obtained from retail banks in thirteen European countries'and highlights differences between banks in EC countries with those in EFTA countries. We are also concerned with the regulatory implications of the data and, having discussed why banks should be regu1ated at all, conclude that banks should be regulated on a functional basis, and that banks should not be permitted to engage in non-banking activities, nor non-banks permitted to undertake banking business.
  • Heikkinen, Päivi (2007)
    Bank of Finland. Financial market report 4
    The European Commission aims to improve the realization of benefits of the single market. To this end, it prepared an extensive list of concrete initiatives for diverse areas of life, including retail banking.
  • Vajanne, Laura (2009)
    Bank of Finland Research Discussion Papers 27/2009
    This paper tests for the existence of market power in banking, using data on demand deposit rates of households and corresponding market rates in five euro area countries. An implicit measure for market power is based on a partial adjustment model that also allows for an asymmetric response of deposit rates to changes in market rates. The period covers the ten years since introduction of the euro. The analysis indicates that banks are exercising major market power within the euro area. In addition to general sluggishness, bank deposit rates reactions are clearly asymmetric: flexible when market rates are decreasing and rigid when rates are increasing. The degree of asymmetric behaviour can be interpreted as a further indication of the market power banks exercise. Despite country differences, a general pattern of interest rate adjustment in demand deposit pricing is observable.
  • Mariotto, Carlotta; Verdier, Marianne (2015)
    Bank of Finland Research Discussion Papers 23/2015
    Over the recent years, the development of Internet banking and mobile banking has had a considerable impact on competition in the retail banking industry. In some countries, the regulatory framework has been adapted to allow non-banks to operate in retail payments and compete with banks for deposits. Several platforms or large retailers have started to offer innovative financial products to their customers. In this paper, we survey the issues related to innovation and competition in Internet banking and mobile banking and discuss some perspectives for future research.
  • Vajanne, Laura (2007)
    Bank of Finland Research Discussion Papers 27/2007
    Since the introduction of the single currency in 1999, major progress has been made towards achieving an integrated European capital and financial market. Available evidence suggests, nevertheless, that the degree of integration varies greatly depending on market segment. Retail banking markets are generally seen to be much less integrated than other segments of financial markets. Most consumers still buy retail financial services from domestic suppliers, cross-border entry of financial services firms is rare even if it is growing and the range of products available or terms attached thereto differ substantially across euro area countries. 	The purpose of this paper is to assess integration of retail banking in the euro area from January 2003 to December 2006. The empirical analysis is based on a monthly panel of recently published harmonised interest rates from euro area monetary financial institutions. We estimate two commonly used measures of convergence, namely ?- and ?-convergence, to assess the speed and degree of integration. Tests for convergence are based on a panel unit root test. 	The tests provide evidence of a process of convergence in retail banking credit interest rates for households and non-financial corporations and show this convergence has recently being continuing. Thus, even if there are substantial cross-country differences in interest rate levels, progress towards integration is observable. Keywords: financial market integration, euro area interest rates, panel data estimation JEL classification numbers: F36, G21
  • Kauko, Karlo (2007)
    Suomen Pankki. BoF online 2007/17
    Tässä paperissa analysoidaan kilpailua vähittäispankkitoiminnassa Suomessa pääkaupunki-seudun ulkopuolella vuosina 1996 ja 2006. Näytteenä on suuri joukko osuuspankkeja. Analyysi tehdään Panzar-Rossen menetelmällä. Kilpailutilannetta näinä kahtena vuotena vertaillaan. Tulokset tukevat hypoteesia kilpailun jonkinasteisesta kiristymisestä, mutta näyttö ei ole tilastollisesti vahva
  • Heikkinen, Päivi (2007)
    Suomen Pankki. Rahoitusmarkkinaraportti 4
    Euroopan komissio haluaa saada sisämarkkinoiden hyödyt toteutumaan tehokkaammin. Tätä varten komissiossa on laadittu toimenpideluettelo, joka kattaa laajan kirjon konkreettisia aloitteita mitä moninaisimmille elämän alueille, myös vähittäispankkitoimintaan.
  • Molnár, József (2008)
    Bank of Finland Research Discussion Papers 4/2008
    This paper tests market power in the banking industry. Price-cost margins predicted by different oligopoly models are calculated using discrete-choice demand estimates of own-price and cross-price elasticities. These predicted price-cost margins are then compared with price-cost margins computed using observed interest rates and estimates of marginal costs. This paper This among the first to. apply this methodology on a detailed, bank-level dataset from the retail banking sector. It extends on previous papers and illustrates the advantages of structural modelling by simulating a counterfactual merger experiment with a number of mergers, each of which involves two major banks, and studying the unilateral effect of the mergers on interest rates. This provides more evidence that concentration measures (such as the Herfindahl index) could be very misleading indicators of market power. Keywords: demand, discrete choice, product differentiation, banking, market power, merger simulation JEL classification numbers: G21, L11, L13
  • Alhonsuo, Sampo; Toivanen, Mervi (2006)
    Bank of Finland. Financial market report 3
    A joint Nordic List, maintained by OMX and covering Finnish, Danish and Swedish listed companies was launched at the start of October.
  • Vajanne, Laura (2007)
    Suomen Pankki. Rahoitusmarkkinaraportti 1
    Euroopan komission selvityksen mukaan Euroopan vähittäispankkimarkkinoilla on useita kilpailun esteitä, jotka lisäävät vähittäispankkipalveluista yrityksille ja kuluttajille aiheutuvia kuluja. Pankkitoiminnan hyvä kannattavuus, keskittyneet markkinat sekä todisteet markkinoillepääsyn esteistä antavat aiheen epäillä, että joissakin EU-maissa pankit pystyvät pitämään kuluttajilta ja pienyrittäjiltä perittävät maksut varsin korkeina.
  • Alhonsuo, Sampo; Toivanen, Mervi (2006)
    Suomen Pankki. Rahoitusmarkkinaraportti 3
    Pohjoismaiden vähittäispankkikorot ovat lähentyneet toisiaan ja korkoerot ovat kaventuneet. Taustalia vaikuttaa markkinoiden yhdentyminen, markkinakorkojen kehitys ja kiristynyt kilpailu.
  • Vesala, Jukka (1993)
    Bank of Finland. Series D 77
    The aim of this study is to survey the competitive and structural effects of European finanGial integration on banking in the forthcoming European Economic Area, where legal impediments to free cross-border provision of banking services will be largely abolished by the legal measures adopted in the EC. The Single Banking Market came into being in the EC on 1 January 1993, and will be extended to inc1ude the EFTA countries when the EEA Agreement enters into force, with the exception of Swizerland, where the agreement has been rejected in a national referendum. A further aim is to comment on the potential industry-specific efficiency and welfare gains and thei! distribution across countries, which are contingent on the expected competitive and structural consequences of banking integration. These gains constitute the basic economic motive behind the Intemal Market Programme of the EC. Insurance firms and other non-bank financial institutions are exc1uded from the study.
  • Kemppainen, Kari (2006)
    Bank of Finland. Financial market report 3
    Competition authorities have done several surveys on the structure of retail banking markets and related competition issues. Among the key findings are that the markets are concentrated and that customers are unable to compare services and prices effectively. Barriers to payment system access and the lack of customer mobility are reported as the key factors hindering effective competition.
  • Hasan, Iftekhar; Schmiedel, Heiko; Song, Liang (2010)
    Bank of Finland Research Discussion Papers 3/2010
    Published in Journal of Financial Services Research, Volume 41, Number 3 (2012): 163-195
    The European banking industry joined forces to achieve a fully integrated market for retail payment services in the euro area: the Single Euro Payments Area (SEPA). Against this background, the present paper examines the fundamental relationship between retail payment business and overall bank performance. Using data from across 27 European markets over the period 2000 2007, we analyse whether the provisions of retail payment services are reflected in improved bank performance, using accounting ratios and efficiency measures. The results confirm that banks perform better in countries where the retail payment service markets are more highly developed, and the relationship is stronger in countries with a relatively high adoption of retail payment transaction technologies. Retail payment transaction technology can itself also improve bank performance, and statistical evidence shows that heterogeneity in retail payment instruments is associated with enhanced bank performance. Similarly, a higher usage of electronic retail payment instruments seems to stimulate banking business. We also show that retail payment services have a more significant impact on savings and cooperative bank performance, although they do also have a positive influence on the performance of commercial banks. Additionally, our findings reveal that the impact of retail services on bank performance is dominated by fee income. Finally, an effective payment service market is found to be associated with higher bank stability. Our findings are robust to different regression specifications. The results may also be informative for the industry when reconsidering its business models in the light of current financial market developments
  • Takalo, Tuomas (2020)
    Journal of the Finnish Economic Association 1
    Published in BoF DP 15/2019
    I calibrate switching cost for the Finnish retail deposit market by using the approach developed by Oz Shy (2002). It turns out that switching costs faced by deposit customers of the main Finnish banks manifest large variation and are high, ranging from 200 euros to nearly 1,400 euros. Over a 20-year period, switching costs have increased by roughly 50% in real terms, but in relation to average account balance, switching costs have not essentially changed. Changes and differences in the banks’ competitive strategies might explain the variation in switching costs across time and banks.
  • Takalo, Tuomas (2019)
    Bank of Finland Research Discussion Papers 15/2019
    Published in Journal of the Finnish Economic Association 2020 ; 1
    I calibrate switching cost for the Finnish retail deposit market by using the approach developed by Oz Shy (2002). It turns out that switching costs faced by deposit customers of the main banks are high, ranging from 200 euros to nearly 1,400 euros. Over the past 20 years, switching costs have increased by roughly 50% in real terms, but in relation to average account balance, switching costs have not essentially changed. I conjecture that differences in the switching costs among the Finnish banks might be explained by differences in their loyalty programs.
  • Vesala, Jukka (1998)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 8/1998
    A model of banking competition is developed, in which diffusion of electronic banking (eg pc and phone banking) and nonbank competition (eg mutual funds, retail stores and insurance firms) are studied as factors that diminish the benefits of branch and ATM networks in terms of enhanced demand and pricing power.A structural increase in price competition, a decrease in the variation of loan and deposit rates across banks and a decline in the optimal numbers of branches and ATMs is shown to result. Competition increases permanently unless banks are able to redifferentiate from rivals through novel innovation that compensates for the reduced value of network differentatiation. Capacity collusion is shown to reduce the sizes of branch and ATM networks as well as banks' markups of loan and deposit rates over the money market rate and respective marginal operating costs.ATM compatibility reduces the total number of machines and under certain conditions raises deposit rates. Under strategic complementarity technological transformation and nonbank expansion enhance the transmission of monetary policy into lending rates, as well as into deposit rates, because banks' incentives to change their rates and the sizes of optimal responses increase with respect to changes in the money market rate.If these trends continue to be more pronounced
  • Vesala, Jukka (2000)
    Suomen Pankki. E 20
    The study analyses the effects on banking competition of the changes in banking delivery and information collection technologies and of the rivalry from outside the traditional banking sector.Key implications for monetary, regulatory and competition policies are also addressed. Evidence is provided that liberalization increased banking competition in Europe.In a mostly deregulated environment, technology is argued to be of major importance for competition, The study argues against the prevalent spatial modelling of banking competition due to the difficulty of representing remote access and nonbank activity.Instead, a novel two-stage model (delivery capacity, then loan and deposit pricing decisions) is developed based on multidimensional differentiation theory.According to the results, benefits that clients derive from branch or ATM proximity, additional outlets, or superior service quality can maintain pricing power for banks.Technological development reduces these benefits and generates a permanent increase in competition.The optimal sizes of branch and ATM networks decline.Network cooperation reduces network sizes, but is not necessarily harmful, as price competition is stimulated. An empirical implementation of the model is presented for the Finnish loan and deposit markets.Banks' pricing power is found to be entirely due to their branch network differentiation and size in the loan markets, and to exist mainly in household lending.In contrast, price coordination was found to likely characterize deposit pricing.The ability to distinguish differentiation from collusion is a new contribution.Banks' pricing advantages were found to be diminishing in all lending and especially deposit-taking activities, following the technological development, which indicates reduced significance of branches for clients. Technological development, growing nonbank activity, deepening capital markets and weakening price coordination are found to enhance the efficiency of monetary policy transmission into lending (and deposit) rates.The results are relevant for the common euro area monetary policy, since they show the dependence of the transmission on particular structural and competitive conditions of the banking system.Finally, deregulation of deposit interest rates insulates loan rates from changes in deposit rates and, contrary to what is often argued, does not make loans more costly. Key words: banking competition, technological change, delivery networks, monetary policy efficiency, competition policy
  • Kemppainen, Kari (2006)
    Suomen Pankki. Rahoitusmarkkinaraportti 3
    Kilpailuviranomaiset ovat useassa eri selvityksessä kartoittaneet vähittäispankkimarkkinoiden rakennetta ja alueen kilpailukysymyksiä. Keskeisinä havaintoina on nostettu esiin markkinoiden keskittyneisyys sekä palvelujen ja hintojen vaikea vertailtavuus. Toimivan kilpailun kannalta erityisinä ongelmakysymyksinä on korostettu maksujärjestelmiin pääsyn rajoitteita sekä asiakkaiden liikkuvuuden vähäisyyttä.