Abstract
The purpose of this research is to find out the trend of research in the field of competition in the banking industry, the synthesis of competition theory and stability theory. The study used bibliometric analysis and used Publish or Perish software with Google Scholar as a database. This study used systematic data to reveal competition contributes to banking performance measured by the size of the company's market forces can be measured using the Lerner Index, Herfindahl-Hirschman Index, or through structural behavioral performance hypotheses (SCP). Researchers typically use concentration ratio, market share or Herfindahl - Hirschman Index (HHI). Using the concentration of bank deposits as a measure of traditional competition. More specifically, total bank deposits by the three largest banks in a country are divided by the total deposits in the country. As. HHI is the sum of the square market share of each bank in a country.
Highlights
Competition in the banking world plays an important role in its function because financial markets are efficient and its regulation has become one of the main objectives of financial policy (Wallace & Benbow, 2018)
Expand the model of (Shaffer & Spierdijk, 2015) for the case of a banking company's multi-product, we show that the scope of the high economic in the banking multiproducts associated with the size of the competition, the Panzar-Rosse low in the banking sector
Panzar-Rosse H-statistic, Lerner index and Herfindind Hirschman Index (HHI) is used as a measure of competition, while the Z-score, the ratio of Non-performing loans (NPLS) and the ratio of equity used as a measure of financial stability
Summary
Competition in the banking world plays an important role in its function because financial markets are efficient and its regulation has become one of the main objectives of financial policy (Wallace & Benbow, 2018). Trade-offs between rival banks and financial stability have always been controversial issues, both among policymakers and academics (Berger et al, 2009) These problems are very important for stability, access to finance, and economic growth (Beck et al, 2006). Politicians, policy makers and regulators will benefit from a thorough explanation about the need for anti-trust regulation and identification of measures of competition are the most reliable (Sengupta, 2007). In countries such as Mexico (Beck et al, 2006), the level of competition in banking is a question crucial for academics, policy makers, and the wider community, because it affects the level of interest rates paid
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