Aplicabilitatea abordărilor nestructurale în determinarea naturii relațiilor de piață în sectorul bancar moldovenesc

Abstract

The aim of this study is to estimate the level of competition in the Moldavian banking sector in 2006- 2010 (before, during and after the financial crisis) with the use of quantitative methods based on the theory of competition measurement in the banking sector (the Industrial Organization Approach to Banking). In this study one model has been used for the evaluation of competition, based on the non-structural approach, namely, the Panzar- Rosse model (P-R). Concentration in the Moldavian banking industry was analyzed by using several methods, and namely: the method of cumulative market share (CMS), the design of a banking market map (BMM), concentration indices (k bank concentration ratios (CR3, 5, 10) and the Herfindahl-Hirschman indices (HHI)). Empirical analysis shows that the degree of competition in the Moldavian banking market in the period 2006-2010 followed a slight upward trend. Econometrical Results demonstrated also a slight decrease in competition in 2008-2009, caused by the financial crisis. This result is confirmed also by the Panzar and Rosse model (P-R). It might also mean that the increase of foreign participation stimulated competitive pressures. Furthermore, the presence of foreign capital was positively correlated with concentration indices.