Danubius International Conferences, 12th International Conference on European Integration - Realities and Perspectives

Measuring Competition in the Romanian Banking Sector

Bogdan Căpraru, Nicoleta-Livia Pintilie
Last modified: 2017-04-10

Abstract

In this work, we evaluate the competition in the Romanian banking system for period 2005-2015. In order to examine the level of competition we assess both structural and non-structural indicators. We measure competition using adjusted Lerner index and Boone indicator, indicators what are estimated using bank-level data. The structural analyze of competition is made by using standard market structure measure of concentration like HHI and CR5. The structural indicators show increase of competition in the Romanian banking system. Adjusted Lerner index and Boone indicator demonstrate that Romanian banking system is characterized by monopolistic competition and relatively competitive practices.