TAILIEUCHUNG - Bank competition, efficiency and stability in Macau

Macau has the uppermost population density and the fourth-highest GDP per capita in the world. Macau’s banking system is regarded as one of the most important indicators of Macau’s economic growth during its transformation into a wealthy and modern metropolis, which calls for thorough research to explore the relationship of bank competition, efficiency and stability in Macau. | http afr. Accounting and Finance Research Vol. 8 No. 4 2019 Bank Competition Efficiency and Stability in Macau Hui Harry Xia1 Kevin Lei2 Jiaochen Liang1 1 California State University Fresno USA 2 University of Saint Joseph Macau Correspondence Hui Harry Xia Craig School of Business California State University Fresno CA 93740 USA. E-mail hxia@ Received September 30 2019 Accepted October 29 2019 Online Published November 4 2019 doi URL https Abstract Macau has the uppermost population density and the fourth-highest GDP per capita in the world. Macau s banking system is regarded as one of the most important indicators of Macau s economic growth during its transformation into a wealthy and modern metropolis which calls for thorough research to explore the relationship of bank competition efficiency and stability in Macau. In this study we use a sample of 26 Macau banks from its return to China in 1999 to 2016 to determine that bank competition does cause efficiency in Macau over the period. We also find indications of a positive but not significant connection between bank market power and bank fragility including income volatility and insolvency risk. Moreover this study finds no evidence that the size of operations proxied by total bank loans and total assets would impact bank efficiency indicating that economies of scale or bank market share don t necessarily bring about efficiency in Macau. Our evidence contributes to the literature by being the first to thoroughly examine and ascertain the relation of bank competition efficiency and stability in Macau. The findings provide meaningful implications to the practitioners and policymakers to make sound decisions accordingly especially to closely monitor and maintain a proper level of competition in Macau s banking sector. JEL classification F33 G21 L11 Keywords banking competition market structure efficiency financial stability Macau banks 1.

• Kế toán - Kiểm toán
• Banking competition
• Market structure
• Financial stability
• Macau banks
• Macau’s economic growth
• Vietnamese banks
• Quiet life hypothesis
• Effects of competition on efficiency
• Banking industry experience
• Pro size expansion policies
• Banking Industry
• Structure and Competition
• Historical development
• The banking system
• Financial innovation
• Shadow banking system
• Vietnam’s banking system
• Unsustainable liquidity
• unfair competition
• Restructuring banks
• Orienting banking activities
• credit market competition
• bank reserves
• internal money market
• banking system liquidity
• monetary operations
• Economic doctoral thesis
• The impact of bank competition to financial stability
• Vietnam commercial bank
• The appropriate policy implications
• Introduction to banking
• Bank competition
• Mergers and acquisitions
• Emerging markets
• Local markets
• Rival distance
• The influence of rival proximity
• Local banking markets
• Rival proximity
• Vietnamese commercial banks
• Herfindahl Hirschman index
• Panzar Rosse model
• Vietnamese banking sector
• Monopoly competition market