Handbook of Financial Intermediation and Banking

CHAPTER 15 Competition and Regulation in the Banking Sector: A Review of the Empirical Evidence on the Sources of Bank Rents

Hans Degryse

Hogenheuvel College

Steven Ongena

CentER, Tilburg University

1. Introduction

2. Measuring Banking Competition

2.1. Traditional Industrial Organization

2.2. New Empirical Industrial Organization

3. Competition: Conduct and Strategy

3.1. Market Structure and Conduct

3.2. Market Structure and Strategy: Product Differentiation and Network Effects

4. Switching Costs

4.1. Evidence on the Existence, Magnitude, and Determinants of Switching Costs

4.2. Switching Costs and Conditions: Relationships as a Source of Bank Rents?

4.3. Market Structure and Market Presence: Bank Orientation and Specialization

5. Location ...