The Analysis of banking regulation on competition in Iranian Banking Industry R

Subject Areas : Financial Knowledge of Securities Analysis

رضا طالبلو ¹ , حمید بهمن پور ²

1 - مسئول مکاتبات
2 - ندارد

Received: 2011-12-27 Accepted : 2012-03-15 Published : 2012-09-10

Keywords: Cost function, Iran's banking system, bank regulation and supervisio, Banking competition,

Abstract :

This paper analyzes the effect of banking regulation on competition on in Iran’sbanking system, using unbalanced panel data models for 17 banks functioning in Iran'seconomy, spanning 1996-2009.In this paper we used lerner index as a proxy for competition. For this purpose,first translog cost function of each bank were estimated and then marginal costs wereestimated. For regulation proxy, using beck et al (2008) method, we use Capitalrequirment , information disclosure of banking and some other proxy. Results showthat Capital requirment increase banking competition. information disclosure ofbanking that is proxy of monitoring,and other regulations do not any sighnificanteffect on banking competition.