text:
VIEWS: 0 PAGES: 27 CATEGORY: Other POSTED ON: 4/4/2010 Public Domain
1 Competition, concentration and their relationship: an empirical analysis of the banking industry 1 Jacob A. Bikker and Katharina Haaf July 2001 Abstract This paper examines competitive conditions and market structure in the banking industry, and inves- tigates their interrelationship. Competition is measured using the non-structural Panzar-Rosse model, which assesses the elasticities of interest revenues with respect to changes in banks ' input prices. In order to distinguish competitive behaviour on local, national and international markets, for each coun- try, three subsamples are taken: small or local banks, medium-sized banks and large or international banks. For all 23 countries considered, estimations indicate monopolistic competition. Competition appears to be weaker in local markets and stronger in international markets. Subsequently, a relationship for the impact of the market structure on competition is derived and tested empirically, providing support for the conventional view that concentration impairs competitiveness. 1 Section Banking and Supervisory Strategies, Directorate Supervision, De Nederlandsche Bank (DNB), POBox 98, 1000 AB Amsterdam, email: firstname.lastname@example.com. The second author was working for DNB when this paper was written and is now at the McGill University, Montreal, Canada. The views expressed in this paper are personal and do not necessarily reflect those of DNB. The authors owe a debt of gratitude to referees of the DNB Staff Reports Series for useful comments and Miriam Holman-Rijken for excellent statistical assistance. 2 3 Competition, concentration and their relationship: an empirical analysis of the banking industry 1. Introduction European banking markets are undergoing unprecedented changes, caused by the deregulation of financial services, the establishment of the Economic and Monetary Union (EMU) and developments in information technology, which may well turn out to be dramatic. Many of these changes will have vast implications for competition and concentration in the banking and financial sectors. One of the consequences is already apparent in the recent wave of mergers in the European banking industry. This process of concentration may affect competition, in particular on local markets for retail banking services. Questions may arise such as: Should concentration be slowed down? or: Are additional measures needed to ensure sufficient competition in local retail markets? Besides, increased concentration and the size of the new global players may cause concerns about financial stability. In order to judge the implications of these developments, one has to examine the banking industry's current market structure, to determine the degree of competition, and to investigate the impact the consolidation is likely to have on the market structure and the behaviour of banks. In recent years, however, relatively few empirical studies have examined competition and concentration in European banking markets. This paper seeks to measure the degree of competition in the European banking markets, and to investigate the impact of concentration on competition. Moreover, it attempts to compare the situation in Europe with that in the US and other countries. The literature on the measurement of competition may be divided into two mainstreams, called the structural and the non-structural approach. 2 The structural approach to model competition includes the Structure-Conduct-Performance (SCP) paradigm and the efficiency hypothesis, as well as a number of formal approaches with roots in Industrial Organisation theory. The SCP paradigm investigates whether a highly concentrated market causes collusive behaviour among larger banks resulting in superior market performance; whereas the efficiency hypothesis tests whether it is the efficiency of larger banks that makes for enhanced performance. In reaction to the theoretical and empirical deficiencies of the structural models, non-structural models of competitive behaviour have been developed, namely the Iwata model, the Bresnahan model, and the Panzar and Rosse (P-R) model. These New Empirical Industrial Organisation approaches measure competition and emphasise the analysis of the competitive conduct of banks without using explicit information about the structure of the market. In this paper we will use one of these non-structural models, the P-R model, to assess the 2 For an overview, see Bikker and Haaf (2001). 4 degree of competition in a large number of countries. One of the structural approaches, the SCP paradigm, provides a theoretical relationship between market structure (concentration) and conduct (competition) which, in the empirical banking literature, is ignored. This paper fills in this gap by using the P-R model's measure of competition to test this relationship empirically. Ideally, an evaluation of competitive conditions and the degree of concentration in the banking indus- try should begin by rigorously defining the market under consideration. The relevant market consists of all suppliers of a particular banking service, including actual or potential competitors, and it has a product dimension and a geographical dimension. The product definition of a market is based on the equality of the products as regards their ability to fulfil specific consumer wants. The geographical boundaries of a market are determined by actual and potential contacts between actual and potential market participants. These boundaries depend on the products involved: for retail banking, the local dimension of a market is relevant while the regional or international dimension is relevant for corporate banking. The desirability to define product and (smaller-scale) geographical markets makes it harder to apply competition and concentration models to the banking industry, especially given the shortage in (European) data with respect to specific banking products or local regions. This paper attempts to solve this problem to some extent by applying the P-R model to samples of banks of various sizes, under the assumption that small banks operate mostly at a local scale and that large banks compete more than other banks at the international level, while medium-sized banks occupy an intermediate position. Furthermore, retail banking is assumed to be concentrated mostly in small banks while corporate banking occurs more at large banks. Banking behaviour in geographical markets of various sizes is observed indirectly, through the data of individual banks used in the P-R model. Of course, this is only a first step in the right direction, but we do acquire information about the effect of (the size of) geographical markets on competition. The plan of the paper is as follows. Section 2 introduces and explains the P-R approach. Section 3 applies this model to banks in 23 industrialised countries. For each country, four samples are taken: small, medium-sized and large banks and, finally, all banks. This section also displays various concentration indices and applies them to the (same) 23 industrialised countries. Finally, the relationship between competition and concentration is tested empirically. The ultimate section summarises and draws conclusions. 2. The Panzar and Rosse approach Panzar and Rosse (1987) formulated simple models for oligopolistic, competitive and monopolistic markets and developed a test to discriminate between these models. This test is based on properties of 5 a reduced-form revenue equation at the firm or bank level and uses a test statistic H, which, under certain assumptions, can serve as a measure of competitive behaviour of banks. The test is derived from a general banking market model, which determines equilibrium output and the equilibrium number of banks by maximising profits at both the bank level and the industry level. This implies, first, that bank i maximises its profits, where marginal revenue equals marginal cost: Ri′ ( xi , n, z i ) − Ci′ ( x i , wi , t i ) = 0 (1) Ri refers to revenues and Ci to costs of bank i (the prime denoting marginal), x i is the output of bank i, n is the number of banks, wi is a vector of m factor input prices of bank i, z i is a vector of exogenous variables that shift the bank's revenue function, t i is a vector of exogenous variables that shift the bank's cost function. Secondly, at the market level, it means that, in equilibrium, the zero profit constraint holds: ( ) ( Ri* x * , n * , z − C i* x * , w, t = 0 ) (2) Variables marked with an asterisk (*) represent equilibrium values. Market power is measured by the extent to which a change in factor input prices ( dwki ) is reflected in the equilibrium revenues ( dRi* ) earned by bank i. Panzar and Rosse define a measure of competition H as the sum of the elasticities of the reduced-form revenues with respect to factor prices: 3 ∂Ri* wki m H =∑ (3) k =1 ∂wk i Ri * The first market model Panzar and Rosse investigated describes monopoly. The monopoly analysis includes the case of price-taking competitive firms, as long as the prices they face are truly exogenous, that is, as long as their equilibrium values are unaffected by changes in the other exogenous variables in the model. An empirical refutation of 'monopoly' constitutes a rejection of the assumption that the revenues of the banks in question are independent of the decisions made by their actual or potential rivals. Panzar and Rosse prove that under monopoly, an increase in input prices will increase marginal costs, reduce equilibrium output and subsequently reduce revenues; hence H will be zero or negative. This is a very generalised result, requiring little beyond the profit maximisation hypothesis itself. Along similar lines, Vesala (1995) proves that the same result holds for monopolistic competition without the threat of entry, i.e. with a fixed number of banks. Thus, this case also falls under what we call 'monopoly'. In the case where the monopolist faces a demand curve of constant price elasticity e>1 and where a constant returns to scale Cobb-Douglas technology is employed, Panzar and Rosse 3 See Panzar and Rosse (1987) or Vesala (1995) for details of the formal derivation of H. 6 proved that H is equal to e-1. Hence apart from the sign, the magnitude of H may also be of importance, as H yields an estimate of the Lerner index of monopoly power L = (e-1)/e = H/(H-1). Three other commonly employed models for an industrial market investigated by Panzar and Rosse are monopolistic competition and perfect competition and conjectural variation oligopoly, all of which happen to be consistent with positive values for H. In these models, the revenue function of individual banks depends upon the decisions made by its actual or potential rivals. For monopolistic and perfect competition, the analysis is based on the comparative statics properties of the Chamberlinian equilibrium model. This model introduces interdependence into banks' structural revenue equations via the hypothesis that, in equilibrium, free entry and exit results in zero profits. Under a set of general assumptions,4 it can be proved that under monopolistic competition, H ≤1. Positive values of H indicate that the data are consistent with monopolistic competition but not with individual profit maximisation as under monopoly conditions. In other words, banks produce more and the price is less than would be optimal in each individual case. A priori, monopolistic competition is most plausible for characterising the interaction between banks, as it recognises the existence of product differentiation and is consistent with the observation that banks tend to differ with respect to product quality variables and advertising, although their core business is fairly homogeneous. In the limit case of the monopolistic competition model, where banks' products are regarded as perfect substitutes of one another, the Chamberlinian model produces the perfectly competitive solution, as demand elasticity approaches infinity. In this perfect competition case, H=1. An increase in input prices raises both marginal and average costs without - under certain conditions - altering the optimal output of any individual firm. Exit of some firms increases the demand faced by each of the remaining firms, leading to an increase in prices and revenues equivalent to the rise in costs. Finally, analysing the conjectural variation oligopoly case, Panzar and Rosse show that strategic interactions among a fixed number of banks may also be consistent with positive values of H. In general, the value of H is not restricted. In the special case of perfect collusion oligopoly or a perfect cartel, the value of H is non-positive, similar to the monopoly model. Table 1 summarises the discriminatory power of H The Chamberlinian equilibrium model described above provides a simple link between H and the number of banks, so between market behaviour and market structure. The model is based on free entry of banks and determines not only the output level but also the equilibrium number of banks. Vesala (1995) proves that H is an increasing function of the demand elasticity e, that is, the less market power 4 One of the assumptions is that the market is in a long-run equilibrium. This assumption can be tested empirically. 7 is exercised on the part of banks, the higher H becomes. This implies that H is not used solely to reject certain types of market behaviour, but that its magnitude serves as a measure of competition. One of the general assumptions underlying the Chamberlinian equilibrium model mentioned above is that the elasticity of perceived demand facing the individual firm, e(x, n, w), is a non-decreasing function of the number of rival banks. Panzar and Rosse call this a standard assumption, eminently plausible and almost a truism. Vesala's result and this assumption together provide a positive (theoretical) relationship between H and the number of banks, or - in a more loose interpretation - an inverse relationship between H and banking concentration. Table 1 Discriminatory power of H Values of H Competitive environment H≤ 0 Monopoly equilibrium: each bank operates independently as under monopoly profit maximisation conditions (H is a decreasing function of the perceived demand elasticity) or perfect cartel. 0<H<1 Monopolistic competition free entry equilibrium (H is an increasing function of the perceived demand elasticity). H=1 Perfect competition. Free entry equilibrium with full efficient capacity utilisation. 2.1. The empirical P-R model The empirical application of the P-R approach assumes a log-linear marginal cost function (dropping subscripts referring to bank i): m p ln MC = α 0 + α1 ln OUT + ∑ β i ln FIPi + ∑ γ j ln EX COSTj (4) i =1 j =1 where OUT is output of the bank, FIP are the factor input prices (regarding e.g. funding, personnel expenses and other non-interest expenses) and EX COST are other variables, exogenous to the cost function Ci (t in equation (1)) Equally, the underlying marginal revenue function has been assumed to be log-linear of the form: q ln MR = δ 0 + δ1 ln OUT + ∑ ζ k ln EX REVk (5) k =1 where EX REV are variables related to the bank-specific demand function (z in equation (1)). For a profit-maximising bank, marginal costs equal marginal revenues in equilibrium, yielding the equilibrium value for output (denoted by an asterisk): m p q ln OUT * = (α o − δ 0 + ∑ β i ln FIPi + ∑ γ j ln EX COSTj − ∑ ζ k ln EX REVk ) /(δ1 − α1) (6) i =1 j =1 k =1 8 The reduced-form equation for revenues of bank i is the product of the equilibrium values of output of bank i and the common price level, determined by the inverse-demand equation, which reads, in logarithms, as: ln p = ξ + η ln (S i OUT* i ). In the empirical analysis, the following operationalisation of the reduced-form revenue equation is used: ln INTR = α + β ln AFR + γ ln PPE + δ ln PCE + ∑ ζ j ln BSF j + η ln OI + e (7) where INTR is the ratio of total interest revenue to the total balance sheet,5 AFR is the ratio of annual interest expenses to total funds, or the Average Funding Rate, PPE is the ratio of personnel expenses to the total balance sheet, or the (approximated) Price of Personnel Expenses, PCE is the ratio of physical capital expenditure and other expenses to fixed assets, or the (approximated) Price of Capital Expenditure, BSF are Bank Specific exogenous Factors (without explicit reference to their origin from the cost or revenue function), OI is the ratio of Other Income to the total balance sheet, and e is a stochastic error term. AFR, PPE and PCE are the unit prices of the inputs of the banks: funds, labour and capital, or proxies of these prices. In the notation of equation (7), the H statistic is given by β + γ + δ . In order to verify whether the competitive structure has changed over time as a result of liberalisation and deregulation, model (7) is applied to a pooled cross-section (across banks) and time- series analysis over the time span 1988-1998. We are assuming that the long-term equilibrium market structure underlying the Panzar-Rosse analysis shifts gradually over time due to institutional changes (as mentioned in the introduction) not incorporated into the model equation. Ignoring market dynamics may lead to imprecise parameter estimates and biased H statistics, which could in turn result in wrong inferences about the competitive nature of the banking industry. Therefore, we multiply the elasticities of H by a continuous time-curve model exp (ε ⋅ TIME ) : ln INTR = α + ( β ln AFR + γ ln PPE + δ ln PCE )e ε ⋅TIME + ∑ζ j ln BSF j + η ln OI + e (8) Note that ε = 0 indicates that H is constant over time. Without this assumption of gradual change, the results may be implausibly erratic, as found by Molyneux et al. (1994), who applied the P-R model to a series of subsequent years. The dependent variable is the 'ratio of total interest revenue to the total balance sheet', as in Molyneux et al. (1994). The decision to consider only the interest part of the total revenue of banks is consistent with the underlying notion inherent in the P-R model, that financial intermediation is the core business 9 of most banks. However, Shaffer (1982) and Nathan and Neaves (1989) took total revenue as their dependent variable . In our sample, the share of non-interest revenues to total revenues is, on average, only 14%. However, it has increased in recent years, doubling between 1990 and 1998. In order to account for the influence exerted by the generation of other income on the model's underlying marginal revenue and cost functions, we also include the ratio of other income to the total balance sheet (OI) as an explanatory variable. Actually, the P-R model we will apply, equation (8), encompas- ses the model of Molyneux et al. (η=0). The 'ratio of personnel expenses to the number of employees' (PENE) could be a plausible alternative to the 'ratio of personnel expenses to the total balance sheet' (PPE) included in our estimations. However, the former ratio is available for only a small subset of our sample. Furthermore, empirical exercises reveal that results based on PENE closely approximate those based on PPE. This is probably due to the size of the sample used, which makes the results less sensitive to measurement errors. The 'ratio of physical capital and other expenses to fixed assets' is a proxy of the price of capital. 6 In particular, the balance sheet item 'fixed assets' appears to be unrealistically low for some banks. However, the exclusion of outliers or a correction for fixed assets, such as applied by Resti (1997), did not lead to remarkable changes in the estimation results. Bank-specific factors (BSF) are additional explanatory variables which reflect differences in risks, costs, size and structures of banks and should, at least theoretically, stem from the marginal revenue and cost functions underlying the empirical P-R equation (8). The risk component can be proxied by the ratio of risk capital or equity to total assets (EQ), the ratio of loans to total assets (LO) and the ratio of non-performing loans to total loans (NPL). More than one variable for risk is considered, as there are cases where one of these variables may be unavailable for a particular bank. The ratio of interbank deposits to total customers and short-term funding (BDEP) and the ratio of demand deposits from customers to total customer and short-term funding (DDC) are used to capture differences in the deposit mix. Correspondent bank activities are taken into consideration when the ratio of cash and due from depository institutions (or banks) to total deposits (CDFB) is included. Total assets (TA) are used as a scaling factor. A positive parameter for LO is expected, because more loans reflect more potential interest rate income. The coefficient for OI is probably negative as the generation of other income may be at the 5 Here we follow the specification of the dependent variable of Molyneux et al. (1994). Other authors use unscaled revenues. Re-estimation of the equation with unscaled revenues yields similar results, particularly if one of the bank-specific factors is 'total assets'. 6 'Capital expenses' includes the cost of premises, equipment and information technology. 10 expense of interest income. Regarding the signs of the coefficients of the other explanatory variables, several writers hold conflicting theories7 while others do not have a priori expectations. 3 Empirical results 3.1 Competition in the banking industry The P-R model has been applied to banks from 23 European and non-European countries, as listed in Table 2. The data have been obtained from the database of the International Bank Credit Analysis Ltd (Fitch-IBCA), a London-based bank credit rating agency. In principle, data from individual banks are used for the years 1988-1998, but the actual starting dates of the samples vary across countries.8 For each country, Table 2 reports the number of banks and available number of observations. 9 The total number of banks is 5,444 and the total number of observations is almost 29,000. Hence, on average, the sample includes more than 5 observations (in fact years) for each bank, since some of the observations are lacking due to non-reporting of (all relevant) data by banks in their annual report, mergers or new entries in the sample period. For each country, the model has been adopted to a sample of all banks, as well as to subsamples of small banks, medium-sized banks and large banks, respectively. This partition into small, medium- sized and large is based on total assets of the banks: for each year, the smallest 50% of all banks of the world-wide sample constitute the small-banks sample, the largest 10% of all banks constitute the large-bank sample, whereas the remainder make up the medium-sized sample. The large-bank sample was kept relatively small to ensure that only the really large banks are included. The final numbers of observations are affected by the availability of data, which actually appears to be correlated with the size of the bank. Of course, the size distribution differs across the countries, see Table 2. An alternative would be to make the size subdivision per country. However, the border between small and medium-sized banks in, say, 1997 would then range from US$ 166 million in Denmark to US$ 12,660 million in South Korea and between medium-sized and large banks would range from US$ 2,797 million in Germany to US$ 111,280 million in Canada. This alternative is less desirable because it makes it very hard to compare subsamples across countries10 and, therefore, has not been considered. 7 For example, Molyneux et al. (1994) expect a negative coefficient for EQ, because less equity implies more leverage and hence more interest income. However, on the other hand, capital requirements increase proportionally with the risk on loans and investment portfolios, suggesting a positive coefficient. 8 Data of earlier years would be less useful due to serious free entry restrictions in European countries. 9 Note that ignoring observations of non-financial institutions, which also provide financial intermediation in some subdivision of the banking market, does not distort the current analysis, as the actual (overall) competitive conditions are observed directly, irrespective of the providers of intermediation services. 11 Due to the small number of assumptions (mainly the cost minimisation and duality hypotheses) underlying the P-R approach, the validity of the test is fairly general. Nevertheless, a few caveats are in order. As we employ consolidated banking data, the banking market of country X is defined as the hypothetical market where banks from country X are active and not, say, the banking market within the national borders of that country. Moreover, banks operate in various segments of the market, both geographically and in terms of banking products and, for that matter, also in various input markets as well. This remark is particularly true of large universal banks with sizeable foreign activities. These internationally active banks are obviously confronted by other competitive forces than small regional banks. The P-R result H reflects only some kind of average over all these market segments. Finally, in certain segments of the markets, banks face competition from non-bank financial institutions. However, the P-R approach does not require observations of non-banks, as the H statistic is a direct measure of the degree of competition taking competitive effects from other institutions in its stride. A critical feature of the H statistic is that the P-R approach must be based on observations that are in long-run equilibrium. An equilibrium test exploits the fact that in competitive capital markets, risk- adjusted rates of return will be equalised across banks. In such a case, the return rates will not be correlated with input prices.11 We find that the hypothesis of equilibrium (H=0) cannot be rejected on the 95% significance level, which justifies the applied methodology. As an illustration, Appendix 1 presents tables with the estimation results of the various bank-size categories for three countries. Tables for the other countries considered can be found in Bikker and Haaf (2000).12 For New Zealand and South Korea, the number of small banks is too small to make adequate estimations. Our basic approach was to create a model each country and bank size combination, which included all selected bank-specific factors. Actually, for some countries, data are unavailable for part of these variables, or available only for a limited number of banks. In the latter case, we accepted only a slight reduction in the sample and otherwise disregarded that particular variable.13 Finally, BSF were deleted, if their coefficients were not significant. This was done mainly to prevent the number of observations from being reduced by the extra explanatory variables, and also for economy's sake. For the latter reason, insignificant coefficients of the time-trend variable were also deleted. Sensitivity analyses confirm that the H estimates are only slightly, if at all, affected by the deletion of the non-significant variables. 10 Then, for instance, (so-called) large banks in Denmark, Germany or Switzerland could be smaller than (so- called) small banks in Finland, Japan or Korea. 11 An equilibrium test is provided by equation (2.7), after replacement of the dependent variable by the rate of return on total assets (ROA) or equity (ROE). H=0 would then indicate equilibrium, whereas H<0 would point to disequilibrium. 12 These tables are available upon request from the authors. 12 Table 2 Sample period and number of observations per country Sample No. of No. of No of observation per bank type: Country period years banks All Small Medium Large Australia 1991-98 8 39 185 13 115 57 Austria 1989-98 10 95 434 226 176 32 Belgium 1989-98 10 85 479 217 194 68 Canada 1988-98 11 60 363 158 140 65 Denmark 1990-98 9 96 578 466 79 33 Finland 1990-98 9 14 77 10 32 35 France 1988-98 11 393 2,489 812 1,334 343 Germany 1988-98 11 2,219 10,987 6,765 3,764 458 Greece 1990-98 9 22 102 46 37 19 Ireland 1992-98 7 35 143 15 112 16 Italy 1988-98 11 365 1,943 813 897 233 Japan 1989-98 10 148 1,081 17 432 632 Korea (South) 1992-98 7 21 63 1 34 28 Luxembourg 1990-98 9 128 825 333 395 97 Netherlands 1991-98 8 57 307 99 145 63 New Zealand 1990-98 9 10 52 9 23 20 Norway 1989-98 10 39 220 74 120 26 Portugal 1991-98 8 41 268 70 144 54 Spain 1990-98 9 154 831 204 458 169 Sweden 1989-98 10 26 145 18 52 75 Switzerland 1988-98 11 385 1,976 1,414 485 77 UK 1989-98 10 213 1,220 518 491 211 US 1991-98 8 799 4,190 1,383 2,326 481 Total 5,444 28,958 13,681 11,985 3,292 In % 100.0 47.2 41.4 11.4 The crucial variable H is equal to (β + γ + δ ) exp (ε ⋅ TIME ) and, hence, depends on TIME, provided ε ? 0. In the latter cases, H has been calculated for 1991 as well as 1997. The coefficient of the average funding rate, β, appears to be most significant and almost invariably positive and, hence, the main contributor to H. The coefficient representing labour cost, γ, is also significant and positive in most cases, but usually smaller than β. The coefficient of the price of capital expenses, δ, varies in size, sign and level of significance, and is the least important component of H. The elasticity δ may also be small due to the poorer quality of Capital expenses and Fixed assets data, which constitute the price level of capital expenses. Finally, the coefficient of TIME, ε, also varies in size, sign and level of significance. In fact, ε is zero (because not significant) in 53% of all cases, indicating no significant change in the competitive con- ditions. Where ε is non-zero, ε is positive in 34 out of the 43 cases, which indicates that competition increases over time in 80% of these cases (see Table 3, where H is shown for both 1991 and 1997 if ε ? 0). In the all-bank sample, competition in 1997 was higher than in 1991 in all the 'non-zero' cases, 13 For this reason, the number of observations of small, medium-sized and large banks of a country do not necessarily add up to the number of all banks. This would only be the case if the model specification were the 13 except for Japan. However, these changes over time are fairly limited, on average 2.3 basis points (bps), which is much less than expected. Increase in competition is more often observed for medium- sized and large banks than for small banks or the all-bank sample, but with lower increases (1.6 bps versus, respectively, 2.3 bps and 3.3 bps). Growth in competition in EU countries has been higher than in non-EU countries for the all-bank sample and small banks, but lower for large banks. The latter result is remarkable as stronger increases in competition for the EU were expected for all bank size samples. Presumably, the rise in European competition, which had been expected for 1997, has not yet materialised in that year. Table 3 Empirical results for H for various bank-size samples and various years All banks Small banks Medium-sized banks Large banks 1991 1997 1991 1997 1991 1997 1991 1997 1 1 2 1 1 1 Australia 0.50 0.57 -0.14 0.67 0.70 0.63 0.681 Austria 0.871 0.932 0.911 0.891 0.913 Belgium 0.891 0.952 0.883 0.861 0.881 Canada 0.601 0.621 0.741 0.631 0.561 0.601 Denmark 0.321 0.361 0.311 0.341 0.751 1.162 Finland 0.781 0.672 0.763 0.701 France 0.701 0.541 0.591 0.741 0.791 0.892 Germany 0.601 0.631 0.561 0.591 0.681 0.701 1.052 1.032 Greece 0.761 0.412 0.661 1.013 0.943 Ireland 0.651 0.992 0.631 0.933 Italy 0.821 0.751 0.891 0.861 0.831 0.811 Japan 0.581 0.541 0.432 0.073 0.113 0.641 0.611 Korea (South) 0.681 - 0.722 0.773 Luxembourg 0.931 0.942 0.942 0.952 0.901 0.911 Netherlands 0.751 0.742 0.871 0.913 0.953 New Zealand 0.861 - 1.112 1.133 0.864 Norway 0.741 0.771 0.801 0.711 0.751 0.661 0.711 Portugal 0.831 0.842 0.881 0.841 0.913 Spain 0.551 0.621 0.561 0.641 0.521 0.591 0.611 0.661 Sweden 0.801 0.842 0.691 0.761 0.953 Switzerland 0.551 0.581 0.511 0.541 0.952 0.923 1.014 United Kingdom 0.611 0.641 0.411 0.811 0.851 1.201 United States 0.541 0.561 0.611 0.621 0.531 0.541 0.681 0.721 Averages a 0.70 0.64 0.75 0.86 Maximum 0.93 0.99 1.12 1.20 Minimum 0.34 -0.14 0.09 0.58 Avgs Europe 0.72 0.68 0.79 0.91 Avgs RoW 0.63 0.41 0.63 0.70 1 For each country, the superscripts refer to the acceptance or rejection of the null hypothesis H=0 and H=1, as is explained in the footnotes of the respective tables in Appendix 1 and Bikker and Haaf (2000); a Where the underlying model includes a time trend, averages are taken over H values of 1991 and 1997. Subsequently, averages are taken over the 23 countries. Loans appear to be the most important BSF, both in terms of occurrence and level of significance. Apparently, the ratio between loans and total assets, as a proxy of risk, is an important factor in the total interest-to-income ratio. The signs of Loans and Other Income are in line with expectation (respectively, positive and negative) for all country and sample-size combinations, apart from Greece same for all bank-size types. 14 where implausible signs are found for small and medium-sized banks. In general, the regression results are highly satisfactory, due in part to the large size of the samples: the estimation of H appears to be very robust. Its value is hardly affected by specification choices, such as those regarding the BSFs. Furthermore, the goodness of fit of the regression equations is satisfactory. The tables in Appendix 1 and in Bikker and Haaf (2000) also present the estimated values for H and test results for the hypothesis H=0 and H=1. Table 3 reports these values for H for various bank-size samples and - where applicable (ε ? 0) - for various years. The superscripts refer to the test results in the footnotes of the tables in Appendix 1 and Bikker and Haaf (2000). Values of H for which the hypothesis H=0 is not rejected at a confidence level of 95% are in italics. Values of H for which the hypothesis H=1 is not rejected at the 95% (or 99%) level of confidence are in boldface (or boldface italics, respectively). 14 For the all-banks samples of all 23 countries, both H=0 (perfect cartel15 ) and H=1 (perfect competi- tion) are rejected convincingly, i.e. at the 99% level of confidence, and for nearly all countries even at the 99.9% level. This would imply monopolistic competition in all countries, without exception. However, this uniform picture becomes more diversified when the banking market is split into segments: the market for (i) small banks operating mostly on a local scale, (ii) middle-sized banks operating both locally and nationally, and (iii) large banks which also operate internationally. For small banks in one country, Australia, the hypothesis H=0 cannot be rejected, which suggests that this market is characterised by perfect collusion. Note, however, that this result is based on an unusually small sample size of 13 observations. In any case, this result suggests a lower level of competition. For a number of bank-size and country combinations, the hypothesis H=1 cannot be rejected, implying that these markets may be characterised by perfect competition. This holds in particular for a number of the large-bank markets. For Danish large banks, H is significant larger than 1, which may indicate a deviating market structure, such as conjectural variation oligopoly (see Section 2). A shortcoming of the P-R test may be the fact that it is single-tailed, in the sense that a positive value rejects any form of imperfect competition (under the assumption of profit-maximising behaviour and at least short-term competition), whereas a negative value is consistent with various types of market 14 Where the probability of the null hypothesis is 5% or more the null hypothesis is accepted or not rejected; if the probability of the null hypothesis is below 1%, the null hypothesis is rejected, and if the probability of the null hypothesis is between 1 and 5% we posit that the null hypothesis is rejected at the (stringent) 99%.confidence level 15 In all countries, the number of banks is far greater than 1. Hence, H=0 reflects perfect collusion or cartel rather than monopoly. 15 power.16 However, this shortcoming is of little consequence for this paper, as H = 0 is rejected in all cases but one. Based on the result of Vesala (1995, page 56), we interpret H between 0 and 1 as a continuous measure of the level of competition, in the sense that higher values of H indicate stronger competition than lower values. The values of H are comparable across national or bank-size markets if the revenue equation, the perceived demand elasticity and its sensitivity to the number of banks (∂e/∂n) are identical for the various markets.17 In particular, the latter cannot be observed, so the following conclusions are under reservations that the necessary assumptions hold. The averages across all countries (bottom rows of Table 3) make clear that H is substantially below average for small-bank markets (0.64), somewhat greater for medium-sized bank markets (0.75) and greatest for large-bank markets (0.86). Apparently, in line with expectations, smaller banks operate in a less competitive environment than larger banks, or, put differently, local markets are less competitive than national and international markets. The 0.64-0.86 spread should be seen as the lower limit of the actual difference in competition between local and international markets, as small banks do not solely operate on local markets but may also be active on the national markets; similarly large banks do not exclusively operate on international markets. The difference in the degree of competition between local and international markets is not only reflected in the overall averages, but also in many of the national figures. The values of H for small-bank markets range from -0.14 to 0.99, whereas for large banks they range from 0.58 to above 1. In Europe, all large banks appear to operate in a highly competitive environment. Exceptions are two Scandinavian countries (Finland and Norway) and Spain with H values around 0.7. Competition among smaller banks is weak in Greece, Denmark and the UK, and limited in France, Germany, Spain and Switzerland. In general, competition seems to be weaker in non-European countries. In the US, Canada and Australia, for instance, H ranges from 0.5 to 0.7, and in Europe from 0.7 to 0.9. Of course, this conclusion does not necessarily hold for all market segments. In Japan competition is, in fact slightly weaker while in New Zealand and South Korea it is somewhat stronger. It should be kept in mind, however, that these comparisons of H across countries are based on more far-reaching assumptions than are made in the standard P-R test (see above). The structure of the European banking industry has altered during the 1980s mostly as in response to domestic deregulation and in anticipation of EU-wide regulatory changes. One of the major consequences has been increased competition, see Gual and Neven (1993) and Molyneux et al. (1996). Gardener and Molyneux (1990) explained how mergers in Europe often contributed to the forming of groups of local and regional based banks that could compete effectively with the large, dominant banks. In a number of countries 16 See e.g. Bresnahan (1989), Shaffer and DiSalvi (1994) and Toolsema (2000). 17 These are sufficient but not necessary requirements. 16 outside Europe, liberalisation and deregulation took place somewhat later, e.g. in the US, where the 1994 Riegle-Neal Act ending a ban on lending and branch operations across state borders, and where in 1999, the Glass-Steagall Act was repealed, which has prevented firms from combining banking and insurance activities. These trends may well have contributed to the observed differences in degrees of competition inside and outside Europe. In order to show what effect our choice for interest revenue as dependent variable in the P-R model had on the outcome, Appendix 2 contrasts our results with those based on total revenue as dependent variable for the Netherlands, where the share of non-interest revenue in total revenue averages 16%. As the financial intermediation model underlying the P-R theory does not apply to the activities generating non-interest revenues, it comes as no surprise that the fit of the P-R model (measured by 2 R ) is much lower for total revenue (0.60) than for interest revenue (0.90). In the total-revenue variant, the estimated value of H is substantially lower, which is plausible because the input price 'funding costs' is generally not relevant for the non-interest revenue activities. Nevertheless, this value of H still points to the same conclusion that the market is characterised by monopolistic competition. Inclusion of 'other income' as an independent variable hardly affects the outcome. Similar results are obtained for other countries. All in all, this sensitivity analysis confirms that total revenue is less appropriate as input for the P-R model than interest revenue. A comparison between our results and those in the literature is shown in Table 4, which summarises the results of other studies applying the P-R model. Shaffer (1982), in his pioneering study on New York banks, observed monopolistic competition. For Canadian banks, Nathan and Neave (1989) found perfect competition for 1982 and monopolistic competition for 1983-1984. Lloyd-Williams et al. (1991) and Molyneux et al. (1996) revealed perfect collusion for Japan. Molyneux et al. (1994) obtained values for H which, for 1986-1989, are significantly different from both zero and unity for France, Germany (except for 1987 when 'monopoly' was found), Spain and the UK, indicating monopolistic competition. For Italy during 1987-1989, the 'monopoly' hypothesis could not be rejected. The strong shifts in H over the years are less plausible, let alone those in market structure. Our pooled time series-cross section approach ensures less volatile results. Unlike Molyneux et al., Coccorese (1998), who also analysed the Italian banking sector, obtained values for H which were at the least non-negative and even significantly different from zero. The value of H also differed significantly from unity, except in 1992 and 1994. For the Finnish banking industry in the years 1985-1992, Vesala (1995) found consistently positive values of H, which differed significantly from zero and unity in 1989 and 1990 only. De Bandt and Davis (2000) investigated banking markets in France, Germany and Italy for groups of large and small 17 banks. They obtained estimates of H which were significantly different from zero and unity for large banks in all three countries. The H statistics estimated for the small-banks sample indicate monopolistic competition in Italy, and monopoly power in France and Germany. The latter results are in flat contradiction to our findings. For Switzerland, Rime (1999) observed monopolistic competition. Like Rime, Bikker and Groeneveld (2000) applied the P-R method to 15 EU-countries without, however, distinguishing between size classes. Their results are rather similar to ours, except for the larger countries, where they used smaller samples of (only) the largest banks. Their H values for these countries may therefore be regarded as overestimations. Table 4 P-R model results in other studies Authors Period Countries considered Results Shaffer (1982) 1979 New York monopolistic competition 1982: perfect comp.; 1983- Nathan and Neave (1989) 1982-1984 Canada 1984: monopolistic comp. Lloyd-Williams et al. (1991) 1986-1988 Japan monopoly France, Germany, Italy, Spain mon.: Italy; mon. comp.: Molyneux et al. (1994) 1986-1989 and United Kingdom. France, Germany, Spain, UK monopolistic competition for Vesala (1995) 1985-1992 Finland all but two years Molyneux et al. (1996) 1986-1988 Japan monopoly Coccorese (1998) 1988-1996 Italy monopolistic competition Rime (1999) 1987-1994, Switzerland monopolistic competition Bikker and Groeneveld (2000) 1989-1996 15 EU countries monopolistic competition large banks: mon. comp. in all countries; small banks: De Bandt and Davis (2000) 1992-1996 France, Germany and Italy mon. comp. in Italy, monop- oly in France, Germany In some respects, the empirical P-R studies present far from uniform outcomes. Yet except in the case of Japan and, according to some authors, Italy, they all point to the existence of monopolistic com- petition in the countries considered. 3.2 Market structure and competitio n Given the current wave of mergers in the EU banking market and the expectation of continued or even accelerating consolidation, concerns have been voiced as to competitive conditions in the EU banking markets, especially in some market segments, such as local and retail markets. More precisely, the question emerges whether market concentration might affect the conduct of banks or the degree of competition. Theoretically, the existence of a relationship between market structure and banks' behaviour is indicated by, among others, the P-R model. Where, in the literature, the impact of the banking market structure on bank performance has been examined exhaustively - employing the Structure-Conduct-Performance (SCP) paradigm - the relevance of market structure for conduct or 18 competitive conditions has been almost entirely ignored. 18 The present section aims at examining this disregarded relationship and seeks to assess a possible impact of the number of banks and the banking market concentration on competition. As was observed above, the P-R approach provides a link between number of banks and competition. However, as a description of the market structure, the number of banks is a rather limited concept. For instance, it fully ignores the size distribution of banks (or inequality) in a given market. As concentration indices, weighted averages of banks' market shares, take both the size distribution and the number of banks into account, they are often used as a simple proxy of the market structure. Apart from the number of banks itself, we also use two - frequently applied - types of such indices as a proxy. 19 The first is the so-called k-bank concentration ratio (CRk ) which takes the market shares of the k largest banks in the market and ignores the remaining banks in that market. This index is based on the idea that the behaviour of a market is dominated by a small number of large banks. The second index we use is the Herfindahl index (HI), which takes market shares as weights, and stresses the importance of larger banks by assigning them a greater weight than smaller banks. It includes each bank separately and differently, and thereby avoids an arbitrary cut-off and insensitivity to the share distribution. Table 5 presents the 1997 HI and CRk , for k = 3, 5 and 10, for all 23 countries analysed earlier. Total assets have been taken as the measure of bank size. The value of the k-bank concentration ratios (for various values of k) always exceeds the value of the HI, since the latter gives less prominence to the markets shares (the weights again being market shares) than the former (unit weights). The results for the various index values are rather similar, displaying a high degree of correlation. The strongest correlations are found between CR 3 and CR 5 , CR 5 and CR10 , and, surprisingly, HI and CR 3 . In terms of ranking, the correlation between HI and CR 3 is, at 98%, by far the strongest. This demonstrates that the HI is determined mainly by (the squares of the market shares of) the large banks, which puts into perspective the alleged drawback of the CR k indices vis-à-vis the HI, i.e. that they ignore the influence of smaller banks. For countries where the number of banks in the available sample is low, as in Finland, Korea and New Zealand, results are less reliable. High concentration rates are found in Denmark, Greece, the Netherlands and Switzerland, where the largest three banks take more than two thirds of the total market in terms of total assets. In Canada, concentration is high only when at least five banks are taken into consideration. Switzerland is the most highly concentrated country according to HI, which may 18 See Calem and Carlino (1991) for an example of the empirical approximation of conduct. 19 seem remarkable given the large number of banks in that country. Increasing the sample of Swiss banks to more than three hardly increases the concentration rate. Concentration appears to be low in France, Germany, Italy, Luxembourg and the US, where the largest three have a combined share of less than one-third. By all measures, concentration is lowest in the US. Germany, where the number of banks in our sample is largest, takes the last place but one in concentration. Table 5 Concentration indices for 23 countries, based on total assets (1997) Herfindahl CR3 CR5 CR10 No. of banks index Australia 0.14 0.57 0.77 0.90 31 Austria 0.14 0.53 0.64 0.77 78 Belgium 0.12 0.52 0.75 0.87 79 Canada 0.14 0.54 0.82 0.94 44 Denmark 0.17 0.67 0.80 0.91 91 Finland 0.24 0.73 0.91 1.00 12 France 0.05 0.30 0.45 0.64 336 Germany 0.03 0.22 0.31 0.46 1,803 Greece 0.20 0.66 0.82 0.94 22 Ireland 0.17 0.65 0.73 0.84 30 Italy 0.04 0.27 0.40 0.54 331 Japan 0.06 0.39 0.49 0.56 140 Korea (South) 0.11 0.45 0.68 0.96 13 Luxembourg 0.03 0.20 0.30 0.49 118 Netherlands 0.23 0.78 0.87 0.93 45 New Zealand 0.18 0.63 0.90 n.a. 8 Norway 0.12 0.56 0.67 0.81 35 Portugal 0.09 0.40 0.57 0.82 40 Spain 0.08 0.45 0.56 0.69 140 Sweden 0.12 0.53 0.73 0.92 21 Switzerland 0.26 0.72 0.77 0.82 325 United Kingdom 0.06 0.34 0.47 0.68 186 United States 0.02 0.15 0.23 0.38 717 Averages/total 0.12 0.49 0.64 0.73 4,645 Standard 0.07 0.18 0.20 0.18 deviations All types of indices appear to be inversely correlated to the number of banks. This is owing to a well- known weakness of concentration indices, namely their dependency on the size of a country or banking market. The smaller the country or the number of its banks, the larger its measure of concen- tration. In the empirical analysis below, we attempt to solve this problem by taking the number of banks into account explicitly. Table 5 is based on the Fitch-IBCA data set, used for the P-R analysis in Section 3.1. This sample does not include all banks, which for some countries might distort the concentration index value. However, this effect is limited as the ignored market segment consists mainly of the smallest banks. This problem, too, is considered in the empirical analysis below. Another shortcoming of concentration indices is that non-bank financial institutions are ignored. As competition from non-banks is mainly related to some segments of the banking market, such as 19 Both indices, CRk and HI, can be derived as proxies for market structure in theoretical SCP relationships, see Bikker and Haaf (2001). 20 mortgage lending, it is difficult to correct for that in the present broad 'total assets' measure of concentration. Finally, the Fitch-IBCA data set consists of consolidated figures and does not distinguish between domestic and foreign operations. For that reason, the concentration index values for small countries with large international banks are overestimated. 20 This is illustrated in Table 6, where market shares for total assets, loans and non-bank deposits are presented for the ten banks with the largest balance-sheet total in the sample. Table 6 Market shares of the ten largest banks in the sample (1997) Country Market shares National Bank Total assets Loans Deposits H C3 1. UBS AG Swi 0.36 0.46 0.45 1.01 0.72 2. Deutsche Bank AG Ger 0.09 0.09 0.12 1.03 0.22 3. HSBC Holdings Plc UK 0.14 0.14 0.15 1.20 0.34 4. Bayerische Hypo- und Vereinsbanka Ger 0.09 0.07 0.04 1.03 0.22 5. Crédit Agricole CA Fra 0.14 0.11 0.13 0.89 0.30 6. Dai-Ichi Kangyo Bank Ltd DKB Jap 0.17 0.14 0.12 0.61 0.39 7. ABN Amro Holding N.V. Neth 0.34 0.39 0.41 0.95 0.78 8. Société Générale Fra 0.10 0.10 0.11 0.89 0.30 9. Norinchukin Bank Jap 0.08 0.13 0.11 0.61 0.61 10. Sakura Bank Limited Jap 0.16 0.13 0.12 0.61 0.61 a Pro forma. The market shares of even the largest banks in France, Germany, Japan and the UK are modest, suggesting that, on a national or market-wide scale, these banks have limited market power. Of course, the situation may be different in particular market segments or local areas. Large banks in small countries, such as UBS of Switzerland and ABN-Amro of the Netherlands, do command substantial market shares, although in the case of ABN-Amro, for instance, domestic business is less than half of total business, while for UBS the ratio is even less than one in four. After correction for foreign operations (which, by the way, affects both the denominator and the numerator of the shares), the market shares for ABN-Amro are almost 30% smaller,21 though still sizeable. To some extent, the indices (such as CR3 ) do indeed reflect the higher concentration in the Netherlands and Switzerland. At the same time, ABN-Amro and UBS may be facing stiff competition on other (foreign) markets. In order to investigate the relationship between competition and market structure in the banking industry, we related the H statistic for all banks 22 , a measure of competition, to the concentration index (CI) and the logarithm of the number of banks in the markets (log n) as representatives of the market structure. Despite the various shortcomings, already noted, which concentration index may have as a 20 A similar distortion does not occur in the P-R analysis, where any link to national borders is absent. There, the level of competition of a country is the average level of competition on the markets where its banks operate. 21 Not in the 50% region lower, due to the denominator effect. 22 It would not be sensible to split the concentration index into indices for small, medium-sized and large banks. Hence the analysis is based on the all-banks sample of H and the concentration indices. 21 proxy of the market structure, we nevertheless, for want of anything better, examined how it acts in the empirical relationship in question. The estimated values of H were taken from the 'all-bank' sample. Concentration indices are one-dimensional measures taking account of two dimensions, i.e. the number of banks, indicating the 'density' of the banking market, and their size distribution, indicating skewness. Some concentration indices can be rewritten as measures of the distribution and the number of banks. For instance, the Herfindahl index can be rewritten as:23 HI = (η 0 + 1) n 2 (9) where η 02 is the variation coefficient of the bank-size distribution. In our empirical analysis, we restore this two-dimensionality, describing the market structure by both the CI and the number of banks. Here we have used logarithms to scale the variable n. There is another reason why inclusion of the number of banks makes sense. Below Table 5, we recorded the dependency of concentration indices on the size of a country or banking market. By including the number of its banks (as proxy of the banking market size) in the regression equation, we correct for this distortion. At the same time, the effect on the CI of a limited sample size (as is the case for some countries) is compensated for. Hence, the estimated regression is given by: H = α 0 + α1CI + α 2 log n + α 3dummy( Europe) (10) A dummy variable 'Europe' is included because H is substantially higher for Europe than for non- European banking markets, which may be due to economic and institutional conditions. The upper part of Table 7 presents regression results for equation (10) for four CIs.24 For all four regressions, the coefficient of the concentration index shows the expected negative sign, indicating that competition is decreasing with increasing market concentration. The significance of CR3 is highest (highest t value), while the effect of CR 10 on competition is strongest (taking into account the indices' standard deviation). The results support the view that the share of the k largest banks (k being 3, 5 or 10) rather than the entire size distribution of banks in a market, is the strongest determinant for the competitive conditions in a market. In principle, a larger number of banks indicates more potential for competition. For that reason, one would expect to see a coefficient with a positive sign. Yet, wherever the size distribution is heavily 23 See Bikker and Haaf (2001), equation (2.5). 24 Alternatively, the observations for the 23 countries could also be weighted by log n as a measure (or proxy) of the respective banking-market size. In this way, we could take account of the magnitude of the banking market in each country, weighting Germany, France and Italy heavier than, say, Greece, Ireland and Sweden. At the same time, lower weights would be allocated to countries where the sample size is limited and the variables are therefore somewhat less reliable, as is the case for Finland, South Korea and New Zealand. Incidentally, the 22 skewed and just a few banks dominate the market, a large number of banks merely indicates that there is a broad fringe of powerless dwarfs. The larger the number of banks, the less opportunity each has to assert its influence and increase competition. The latter effect appears to be dominant, as the net effect of the number of banks on competition is negative.25 Obviously, in situations, typically measured by the CRk indices, where a few large banks occupy a large share of the market, market power is exercised more heavily. The dummy variable for Europe proves to be significant for all four regression equations, indicating the different institutional and economic conditions faced by European banks, which are disregarded by the other explanatory variables. Table 7 Relationship between competition and concentration for the all-bank sample HI CR3 CR5 CR10 Constant 1.01 (7.0) 1.23 (7.1) 1.31 (5.5) 1.54 (4.6) Concentration Index -0.93 (1.9) -0.53 (2.9) -0.47 (2.3) -0.65 (2.5) Log n -0.07 (2.8) -0.09 (3.6) -0.10 (3.2) -0.11 (3.0) Dummy (Europe) 0.15 (2.3) 0.16 (2.8) 0.14 (2.3) 0.17 (2.9) 2 0.25 0.37 0.30 0.35 R Constant 0.90 (7.0) 1.05 (6.6) 1.14 (5.3) 1.33 (4.5) Concentration Index -0.71 (1.8) -0.38 (2.4) -0.37 (2.1) -0.51 (2.4) Log n -0.07 (3.1) -0.08 (3.6) -0.09 (3.3) -0.10 (3.1) Share of bank deposits 0.85 (3.6) 0.83 (3.7) 0.80 (3.5) 0.89 (4.0) 2 R 0.42 0.48 0.45 0.50 Explanatory note: T-values in parenthesis. The critical value of the one sided t-value test is 1.73 and that of the two-sided t- value test is 2.09. It is no easy task to find out which differences cause the diverging levels of competition between European and non-European banks. We found that if the share of bank demand deposits in total assets is included in equation (10), the Europe dummy becomes insignificant and may be dropped, see the lower part of Table 7. This share reflects an aspect of banks' average funding habits: European banks make more extensive use of the interbank market for funding. We may have hit on an important variable here,26 but a convincing theoretical explanation is lacking. One possible explanation is that where banking and financial markets are more developed, (i) the interbank market is more developed and (ii) competition is more intense. If this is true, then the share of bank deposits acts as an indicator of financial sophistication. The above provides evidence that conduct such as competitive behaviour may indeed be related to characteristics of the market structure such as concentration and number of banks. A Wald test, which assesses the significance of the coefficients of the CI and the number of banks simultaneously, weighted regression results appear to be similar to the unweighted outcomes of Table 7, while the level of significance is even substantial higher for CI and log (n). 25 An alternative formulation is that the effect of the number of banks, as taken into account by the CI, is overestimated (implying low values for the CI value in large countries and vice versa). 26 As suggested, for instance, by the better fit in Table 7, when the share of interbank deposits is included. 23 confirms this conclusion. 27 The evidence is only modest, however, as equation (10) is not very robust. For instance, if the Europe dummy is deleted, the significance of the other parameters drops dramatically. Nevertheless, the continuing process of consolidation in the banking industry may raise the policy makers' concern about competitive conditions in the banking markets. This concern, however, is very often related not so much to entire markets as to market segments, such as, for instance, deposits or certain geographical areas. Unfortunately, the limited availability of data makes it impossible to make more refined analyses. 5. Conclusions The ongoing dramatic structural changes in the banking industry, particularly in Europe, may affect competition, especially on local markets and for bank's retail services. This paper sought to assess competitive conditions and concentration in the banking markets of as many as 23 industrialised countries inside and outside Europe over approximately 10 years. In addition, it investigated the interaction between competition and concentration. The Panzar-Rosse approach has been applied to obtain a measure of competitive conditions in to 23 countries over a time span of more than 10 years. The resulting H statistic provides strong evidence that the banking markets in the industrial world are characterised by monopolistic competition, but perfect competition cannot be ruled out in some cases. We have attempted to take account of the geographical and even the product dimension of banking operations by defining three sub-markets in terms of bank sizes for each country and have estimated their degree of competition. Competition is stronger among large banks - operating predominantly in international markets - and weaker among small banks - operating mainly in local markets - while medium-sized banks take an intermediate position. In some countries, perfect competition has been found among large banks. For a number of countries, estimates of the H statistic over time indicate a significant increase in competition. Competition seems to be somewhat stronger in Europe than in countries like the US, Canada and Japan. Thanks to the large sample and the pooled regression approach, our results are fairly robust. Generally speaking, our findings are in keeping with comparable studies in the literature, which also point to monopolistic competition in most countries. Concentration in the banking markets of 23 industrialised countries was measured using various k- bank concentration ratios and the Herfindahl index. Empirical studies concerning the impact of market structure on banks' conduct are rare. In order to investigate this relationship, the estimated H-values indicating competition are used as proxies of conduct and are related both to the concentration indices considered and to the absolute number of banks operating in these markets, acting together as a proxy 27 For all (eight) equations in Table 7, and also in the weighted regressions (not shown), a hypothetical value 24 of the market structure. The impact of both market structure measures on competition appears to be significant, most markedly so when the k-bank concentration indices are used. The latter confirms the observation that a few large (cartel) banks can restrict competition and that a multitude of fringe competitors is unable to engender competition. of zero for both coefficients is rejected at the 95% level of confidence. 25 References Bikker, J.A., Groeneveld, J.M., 2000, Competition and concentration in the EU Banking Industry, Kredit und Kapital 33, 62-98. Bikker, J.A., Haaf, K., 2000, Competition, concentration and their relationship: an empirical analysis of the banking industry, Research Series Supervision no. 30, De Nederlandsche Bank, Amsterdam. Bikker, J.A., Haaf, K., 2001, Measures of competition and concentration: a review of the literature, De Nederlandsche Bank, Amsterdam. Bresnahan, T.F., 1989, Empirical studies of industries with market power, in: Schmalensee, R., Willig, R.D. (Eds): Handbook of Industrial Organisation, Volume II, 1012-1055. Calem, P.S., Carlino, G.A., 1991, The Concentration / Conduct / Relationship in Bank Deposit Markets, Review of Economics and Statistics 73, 268- 276. Cetorelli, N., 1999, Competitive Analysis in Banking: Appraisal of the methodologies, Economic Perspectives, Federal Reserve Bank of Chicago, 2-15. Coccorese, P., 1998, Assessing the Competitive Conditions in the Italian Banking System: Some Empirical Evidence, BNL Quarterly Review, no. 205, 171-191. De Bandt, O., Davis, E.P., 2000, Competition, contestability and market structure in European banking sectors on the eve of EMU, Journal of Banking and Finance 24, 1045-1066. Gardener, E.P.M., Molyneux, P., 1990, Changes in Western European Banking, Allen Unwin, London. Gual, J., Neven, D., 1993, Banking, in: Social Europe - Market Services and European Integration, European Economy, Report and Study no.3. Lloyd-Williams, D.M., Molyneux, P., Thornton, J., 1991, 'Competition and Contestability in the Japanese Commercial Banking Market', Institute of European Finance, Research Papers in Banking and Finance, no 16, Bangor. Molyneux, P., Lloyd-Williams, D.M. , Thornton, J., 1994, Competitive Conditions in European banking, Journal of Banking and Finance 18, 445-459. Molyneux, P., Altunbas, Y., Gardener, E.P.M., 1996, Efficiency in European Banking, John Wiley & Sons Ltd. Nathan, A, Neavel, E.H., 1989, Competition and Contestability in Canada's Financial System Empirical Results, Canadian Journal of Economics 22, 576-594. Panzar, J.C., Rosse, J.N., 1987, Testing for 'Monopoly' Equilibrium, Journal of Industrial Economics 35, 443-456. Resti, A., 1997, Evaluating the cost-efficiency of the Italian banking system: what can be learnt from the joint application of parametric and non-parametric techniques, Journal of Banking and Finance 21, 221-250. Rime, B., 1999, Mesure de degré de concurrence dans le système bancaire Suisse à l'aide du modèle de Panzar et Rosse, Revue Suisse d'Economie Politique et de Statistique 135, 21-40. Rosse, J.N., Panzar, J.C., 1977, Chamberlin vs Robinson: An Empirical Study for Monopoly Rents, Bell Laboratories Economic Discussion Paper. Shaffer, S., 1982, A non-structural test for competition in financial markets, Proceedings of a Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 225-243. Shaffer, S., DiSalvo, J., 1994, Conduct in banking duopoly, Journal of Banking and Finance 18, 1063- 1082. Toolsema, L.A., 2000, Competition in the Dutch Consumer Credit Market, Paper presented at the Conference on Financial Structure, Bank Behaviour and Monetary Policy in the EMU, October 5-6, 2000, University of Groningen. Vesala, J., 1995, Testing for Competition in Banking: Behavioural Evidence from Finland, Bank of Finland Studies, E:1. 26 Appendix 1:Estimation results of the P-R models for four countries and various size classes Table A.1 Empirical results for Germany (1988-1998) All banks Small banks Medium-sized banks Large banks Coeff. t-values Coeff. t-values Coeff. t-values Coeff. t-values Funding rate 0.45 74.1 0.39 53.7 0.50 50.9 0.92 28.1 Wage rate 0.13 35.9 0.13 27.5 0.16 25.4 0.14 17.2 Capital price 0.00 0.3 0.01 4.8 -0.01 2.3 0.00 0.1 Time 7.07 19.0 9.68 18.8 4.72 9.3 -2.32 2.6 Loans ratio 0.07 32.0 0.09 33.0 0.04 10.0 Other Income -0.05 23.6 -0.06 21.0 -0.05 13.7 Total Assets -0.01 8.9 -0.03 4.7 Bank Deposits -0.01 6.8 -0.00 2.1 -0.01 6.0 -0.12 12.5 Equity -0.04 12.5 -0.02 5.3 -0.03 5.4 -0.22 18.5 Dem. Dep. C. 0.01 4.5 0.02 8.2 Cash & DFB 0.01 7.3 0.01 7.0 0.01 5.4 Intercept -0.64 26.3 -0.83 27.6 -0.45 11.2 1.05 8.8 Adj. R2 0.69 0.69 0.71 0.84 No. of observ. 10,513 6,523 3,672 458 H (1991-1997) 0.601 0.631 0.561 0.591 0.681 0.701 1.052 1.032 1 2 H=0 and H=1 rejected (level of confidence 99.9%); H=1 not rejected (level of confidence 95%); Table A.2 Empirical results for the Netherlands (1991-1998) All banks Small banks Medium-sized banks Large banks Coeff. t-values Coeff. t-values Coeff. t-values Coeff. t-values Funding rate 0.75 48.5 0.70 23.1 0.85 48.9 0.67 19.1 Wage rate 0.08 5.0 -0.01 0.2 0.06 4.7 0.09 9.2 Capital price -0.07 2.9 0.05 0.3 -0.05 2.2 0.12 4.3 Time 6.80 4.4 Loans ratio 0.04 3.4 0.04 4.76 0.27 4.8 Other Income -0.05 5.1 -0.06 3.1 -0.03 2.9 Total Assets 0.01 2.3 0.03 3.2 0.02 3.1 Equity 0.12 8.7 0.14 5.6 0.07 4.5 Intercept -0.73 8.8 -1.31 7.9 -0.44 4.5 -0.20 1.6 Adj. R2 0.90 0.90 0.95 0.95 No. of observ. 296 96 139 61 H (1991-1997) 0.751 0.742 0.871 0.913 0.953 1 H=0 and H=1 rejected (level of confidence 99.9%); 2 H=1 not rejected (level of confidence 95%); the F-statistic is 2.33 and the probability level (of the null hypothesis) is 13.0%;3 H=1 not rejected (level of confidence 95%); the F-statistic is, respec- tively, 2.72 and 0.92, and the probability level (of the null hypothesis) is, respectively, 10.5% and 34.1%. Table A.3 Empirical results for the United States (1991-1998) All banks Small banks Medium-sized banks Large banks Coeff. t-values Coeff. t-values Coeff. t-values Coeff. t-values Funding rate 0.40 46.7 0.40 29.0 0.40 35.8 0.43 19.6 Wage rate 0.07 13.7 0.18 16.1 0.06 8.4 0.13 8.7 Capital price 0.06 19.7 0.02 3.2 0.06 14.1 0.10 15.4 Time 3.62 4.4 3.08 2.9 3.52 3.0 8.01 4.8 Loans ratio 0.12 20.0 0.09 11.2 0.12 14.1 0.21 18.3 Other Income -0.04 6.4 Total Assets -0.02 10.1 -0.02 4.5 Equity 0.06 7.4 0.03 2.5 0.05 4.7 Non-perf. loans 0.01 4.3 0.01 3.7 Cash & DFB 0.03 11.9 0.02 5.2 0.04 9.6 Intercept -0.76 16.3 -0.63 8.3 -0.76 11.2 -0.02 2.6 Adj. R2 0.51 0.48 0.52 0.70 No. of observ. 3.835 1.350 2.216 463 H (1991-1997) 0.541 0.561 0.611 0.621 0.531 0.541 0.681 0.721 1 H=0 and H=1 rejected (level of confidence 99.9%); 27 Appendix 2 The dependent variable: interest revenue versus total revenue Table A.4 Empirical results for the Netherlands for interest revenue and total revenue (all banks; 1991-1998) Interest revenue Total revenue Including other income Excluding other income Including other income Excluding other income Coeff. t-values Coeff. t-values Coeff. t-values Coeff. t-values Funding rate 0.75 48.5 0.76 47.8 0.48 17.6 0.47 17.0 Wage rate 0.08 5.0 0.01 2.0 0.07 2.5 0.16 13.3 Capital price -0.07 2.9 -0.01 1.6 0.01 0.7 0.02 1.3 Time Loans ratio 0.04 3.4 0.04 3.4 0.04 1.6 0.02 1.0 Other income -0.05 5.1 0.06 3.5 Total assets 0.01 2.3 0.01 1.4 -0.01 1.1 -0.00 0.4 Equity 0.12 8.7 0.11 7.6 0.07 2.9 0.08 3.3 Intercept -0.73 8.8 -0.67 8.0 -0.51 3.5 -0.50 34 Adj. R2 0.90 0.90 0.59 0.57 No. of observ. 296 296 296 296 H (1991-1997) 0.751 0.771 0.561 0.651 1 H=0 and H=1 rejected (level of confidence 99.9%);
Pages to are hidden for
"Competition, concentration and their relationship an"Please download to view full document


text:
CT River Land Preserved
The Forest Society raises $2.8 million for Connecticut River forest project, protecting more than six miles of river frontage, working forest and wildlife habitat.
Gone Fishing
- By: Paul Doiron
To Read Tagewahnahn is to journey to eastern Maine's Grand Lake Stream
Bush Administration Proposal Allows Industrial Fish Farming Off CoastsSubmitted by Ted Williams on Wed, 07/09/2008 - 09:24.
Proposal Circumvents Congress to Allow Fish Farms On Oil And Gas Rigs
Washington, DC – The Bush administration took an end-run around Congress today with a proposal that, for the first time ever, would set up a federal program to allow industrial fish farming in federal waters. The proposal,
Maine Governor Fighting Salmon RecoverySubmitted by Ted Williams on Tue, 07/08/2008 - 10:08.
How discouraging to see the Governor of Maine, who just bowed and scraped for the voices of ignorance and superstition who are lobbying to keep native alewives out of their biggest sanctuary anywhere, still fighting the recovery of Atlantic salmon. Maine says it wants to be an "equal partner,"
Herring HearsaySubmitted by Ted Williams on Fri, 06/27/2008 - 08:30.
(from current issue of FR&R)
Herring Hearsay
In what should be America's most important river-herring refuge, superstition suppresses these imperiled fish.
by Ted Williams
This from Albion Goodwin of Pembroke, Maine—governor-appointed fish-and-wildlife advisor

subset: commoncrawl


text:
Three Autocross Laps in a Ferrari or Lamborghini
Candlestick Park • San Francisco, CA
September 27, 28, 29
What you get
- Choice of Two Packages
- Three Laps Around Candlestick Park
- Luxury Experience in a Ferrari or Lamborghini
You dream of living your life in the fast lane, but the daily carpool commute in a sluggish sedan isn't quite satisfying your need for speed. Rev things up with this offer from Imagine Lifestyles from September 27 to 29 at Candlestick Park. Enjoy your choice of two packages:
$99 ($349 value) for a ride-along package, including:
• Three autocross laps chauffeured by one of the Imagine Lifestyles professional drivers
• Racing fundamentals instruction
$149 ($349 value) for a driving package, including:
• Three autocross laps in a Ferrari or Lamborghini
• Racing fundamentals instruction
• Photo ops with a Lamborghini Gallardo or a Ferrari F430
Imagine Lifestyles's Website
supercar specs
Ferrari F430
4.3-Liter V8 Engine
483 Horsepower
0-60 mph: 3.5 Seconds
Lamborghini Gallardo
5.2-Liter V10 Engine
560 Horsepower
0-62 mph: 3.4 Seconds
Fine printREFUND POLICY: A refund may only be collected within 24 hours of your purchase; no refunds permitted on day of event • Limit 5 per customer, additional as gifts • Each voucher is good for 1 person • The deal is valid only for for use on September 27-29, 2013 and may not be exchanged or redeemed for any other dates • Must be over 21+ to drive with a valid US driver's license • Must sign waiver and have valid credit card • Must be 10+ to participate in ride-along with instructor driving; must have parent/guardian present; parent/guardian does not participate in ride-along • Autocross insurance ranging from an additional $49 - $99 required if customer is driving; option if instructor drives • Imagine Lifestyles driving instructor rides in passenger seat • Cars, dates, and times are subject to availability • Entire value must be used in a single visit
Three Autocross Laps in a Ferrari or Lamborghini
times for
More upcoming events
use by Aug 5
San Francisco, CA
One Chinatown Food Tour Ticket
Sidewalk Food Tours of San Francisco
Saturday Aug 15 through Saturday Nov 14
Admission to City Beer Run 5 or 10K
Saturday Jul 25 through Sunday Nov 29
San Francisco, CA
Treasure Island Flea Entry and Drinks
Avenue of the Palms, Treasure Island
use by Jul 26
San Francisco, CA
Ticket to Chic Metropolitan Wine & Food Soiree
Maiden Lane
use by Aug 5
3-Course Murder Mystery Dinner for 1 or 2
Saturday Aug 1
Verdi, NV
Concert Ticket for the Boomtown Casino & Hotel
Boomtown Casino & Hotel
Saturday Jul 18
Oakland, CA
2 Tickets to a SF FlameThrowers Match
Laney College Field
use by Aug 31
Oakland, CA
Murder Mystery Dinner Show & 4-Course Meal
Waterfront Hotel
Nearby deals
M&M Thread Salon
Facial, Eyebrow, or Lip Threading
Exploring Music
2 or 4 Piano, Guitar, Violin, or Ukulele Lessons
Voilà La Familia
Thai or Swedish Massage; or Couples' Massage
Just Right Chiropractic
Chiropractic Care Package
Silk Skin Care
Diamond-Tip Microderm with LED Treatment Option
Jazz'z Salon
Haircut and Color; or Hair Extensions
Body Focus Health Center
Chiropractic Exam, Two X-Rays & a Full Adjustment
Eye Site Optometry
$100 to Spend on Frames and Lenses


text:
|Amazon Price
|New from
|Used from
Kindle Edition
"Please retry"
"Please retry"
"Please retry"
Product Details
Would you like to update product info or give feedback on images?
Alison Loat is a regular commentator on Canadian politics, a graduate of the Harvard Kennedy School of Government and a former consultant with McKinsey & Company. For her work as a co-founder of Canada25, she was recognized as a young leader by Maclean's and the Public Policy Forum. She was also selected as one of the top 100 women in Canada by the Women's Executive Network, and has received both the Gold and Diamond Jubilee Medals for her service to Canada. Loat is also an associate fellow and instructor at the School of Public Policy and Governance at the University of Toronto. Follow her on Twitter @AlisonLoat.
Michael MacMillan is the CEO of the Canadian-based company Blue Ant Media. He was previously the executive chairman and CEO of Alliance Atlantis Communications. MacMillan co-founded the original Atlantis Films in 1978, which won an Oscar in 1984 for its short film Boys and Girls. A recipient of the Gold and Diamond Jubilee Medals for service to Canada, he is also a co-owner of Closson Chase, a vineyard and winery in Prince Edward County, Ontario.
Alison Loat and Michael MacMillan co-founded the think tank Samara in 2009. Visit www.samaracanada.com to learn more. Follow Samara on Twitter @SamaraCDA.
The most interesting thing for me was how so many public servants have large holes in their elective service that were so negative. Read morePublished 1 month ago by Jordan R. Hill
This is a great report on a qualitative research project. Hence is is heads above other analyses concerning government in Canada. Read morePublished 1 month ago by Elaine
A fascinating look at what it takes to be an MP, and how the process works from the people who have just come out of the ordeal. Read morePublished 2 months ago by Steven Waslander
Great read. Good for those who are interested in the current state of Canadian politics and what MP's have to go through while in office.Published 3 months ago by Jay Skopyk
A good book with many important points about politics as perceived by politicians from all political parties. Read morePublished 5 months ago by Johnson Jones
Borrowed it from the local library and read it.Glad I didn't buy it as the book was certainly not what it was said to be. Read morePublished 5 months ago by Johnny Boy
Anyone interested in Canadian politics, and many who are not, should read this book. It tells us much about what is wrong with how we are governed, though not everything. Read morePublished 12 months ago by David Huntley
I echo the views of reviewer Steven. Thanks to this book, I finally understand, better than ever, what goes on at Parliament Hill, and how that compares to what is supposed to be... Read morePublished 12 months ago by Bruce Rhodes


text:
Shanghai Travel Guide
Shanghai is a popular spot for night owls who never miss out a chance to enjoy the nightlife. Travelers wondering what to do in Shanghai should visit Huangpu River Cruise, with each tour ranging from 30 minutes to 6 hours. This is a great way to see the city's striking skyline, one of the best things to do in Shanghai. Oriental Pearl TV Tower, Huangpu Park, the Bund, and Jin Mao Tower are other attractions.
Another thing to do in Shanghai is to visit a traditional Chinese tea house. The city has many, the best of which may be Tang Yun tea house, where you can serve yourself many varieties of tea, along with traditional Chinese delicacies.
If you're wondering what to do in Shanghai with kids, check out one of the city's many theme parks, like Shanghai Happy Valley or Jinjiang Amusement Park. Also worth visiting are Madame Tussauds Shanghai, the Shanghai Propaganda Poster and Art Centre, and Shanghai City Beach, a beautiful city beach is on the north bank of Hangzhou Bay. It has golden sands, blue waters, and outdoor activities like beach volleyball, boating, bungee jumping, and 4-wheeling.
Shanghai's latest secret?Lane 248, a gritty, narrow street now inhabited by artsy cafés and intimate boutiques, hidden behind Taikang Road.
On the third floor of the Shanghai Urban Planning Exhibition Center there's a room-size scale model of the city in 2020.
Part museum, part teahouse, and part salon.
The shop stocks a wonderful collection of Shanghai Deco lampshades and accents.
Stroll the riverfront promenade known as the Bund, with its Art Deco, Neoclassical, and Beaux-Arts façades, bars and shops, and views of the space-age towers of Pudong.
Have a nightcap at decadent Bar Rouge, high above the Bund in Shanghai.
Lyndon Neri and Rossana Hu's modern design and furniture boutique.
At this bookshop-café on one of the elegantly shaded streets in the French Concession, coffee addicts linger late into the night amid the Ming-dynasty-style décor.
This unassuming shop with a white front and simple black signage stands out on a road of fashion shops. Owner Liu Xiao Lan, a member of the Miao ethnic group, sells handmade items with an emphasis on Miao-crafted goods. The variety can include handcrafted tapestries, ornaments, and shoes.
The exhibition hall displays samples of batik prints dating back to the 1890's.
Xintiandi was the birthplace of the Chinese Communist Party; now this restored two-block district is defined by upscale shops and restaurants.
The bar on the 58th floor of the Ritz-Carlton Shanghai, Pudong, with great views and a clubby vibe.


text:
By clicking the "Submit" button, you agree to Avvo's Terms of Use. Please see our Community Guidelines and Privacy Policy for information on posting to Avvo and how we collect, use, and share information you provide to us.
14326 Waterside LnBroomfield, CO 80023
Licensed for 21 years
Go back to Teri's profile.


text:
10 children rescued from prostitution in crackdown
7:24 AM, Jul. 30, 2013
Email this article
10 children rescued from prostitution in crackdown
As part of a nationwide focus on an issue that is 'certainly not going away', the FBI said Monday that Wisconsin authorities had rescued 10 young people and arrested 100 alleged pimps and others in a
A link to this page will be included in your message.
Join Our Team!
If you are interested in working for an innovative media company, you can learn more by visiting:Gannett Careers
View the last seven days
- Yesterday, Jun. 29
- Sunday, Jun. 28
- Saturday, Jun. 27
- Friday, Jun. 26
- Thursday, Jun. 25
- Wednesday, Jun. 24
- Tuesday, Jun. 23
See our paid archives for news older than a week.
Things To Do
See all Events
John Michael Kohler Arts Center Sheboygan, Wisconsin
MORE Events | Submit an Event
Customer Service
Buy and sell
Special Sections


text:
IHC invites you to take a moment to get to know people with intellectual disabilities living in your community. See and hear the real stories of a group of Kiwis with disabilities.
Take a moment with us is an inspirational exhibition that showcases the everyday lives of people from all over New Zealand. It might make you think what people's lives could be like if we focused more on their abilities, rather than their disabilities.
See review below from New York Sprout Film Festival
Take a moment with us exhibition
New Zealand Steel Gallery
12 Massey Avenue
Enquiries: email@example.com
Date: Saturday 23 May to Saturday 4 June 2015
Click here to view all the free events during the exhibition
Previous shows
Take a moment with us was first displayed at the Canterbury Museum in Christchurch from November 2010 to February 2011. 176,000 people viewed the exhibition.
Hi-res photographs and video available
Email firstname.lastname@example.com
Review from New York 2012 Sprout Film Festival
"The film clearly demonstrated the international scope of the challenge of accepting people with disabilities. It not only enhanced the discussions following the screenings but also raised the enjoyment level of the festival. We were honored to present the film and realised how it clearly succeeded in accomplishing the festival's motto – making the invisible visible."
"It was a wonderful addition to the programme and to the festival." Sprout Film Festival executive director Anthony Di Salvo, Metropolitan Museum of Art, New York where a short film from Take a moment with us featured in April.
Sprout is a New-York based organisation offering programmes for people in the United States with intellectual and developmental disabilities. It presents annual international film festivals featuring people with disabilities as subjects and performers.


text:
The Federal Government will Become America's Model Employer for the 21st Century.
Recruit, Retain and Honor a World-Class Workforce to Serve the American People.
Congress approved a cost of living increase for Federal retirees.
Manage your retirement online.
OPM's Human Resources Solutions organization can help your agency answer this critically important question.
Developing senior leaders in the U.S. Government through Leadership for a Democratic Society, Custom Programs and Interagency Courses.
The content available is no longer being updated and as a result you may encounter hyperlinks which no longer function. You should also bear in mind that this content may contain text and references which are no longer applicable as a result of changes in law, regulation and/or administration.
, DC - The Human Resources Line of Business (HR LOB) at the U.S. Office of Personnel Management (OPM) is revolutionizing the way HR services are delivered throughout the Federal government. The HR LOB, through its support of the President's Management Agenda (PMA) to make government more responsive and cost-effective, is slated to help the Federal government realize cost savings of $1.1 billion. These and other groundbreaking efforts have been recognized at the highest levels of government.
Last September, the HR LOB Director, e-Gov initiative Project Managers and HR LOB Task Force representatives were presented with a letter of commendation from President George Bush citing them for their diligent efforts in advancing the PMA to expand electronic government.
Norm Enger, OPM's HR LOB Director said, "OPM is pleased with the results from the efforts of this innovative venture. Since April 2004, the HR LOB has engaged over 24 agencies in defining not only its vision, goals, and objectives, but the common solution, target architecture, and supporting business case. This program offers common solutions that will enable Federal departments and agencies to work more effectively, and it provides managers and executives across the Federal Government improved means to meet strategic objectives."
The HR LOB provides Federal government the infrastructure to support pay-for-performance systems, modernized HR systems, and the core functionality necessary for the strategic management of human capital.
Specifically, the collaborative nature of the HR LOB effort has been reflected in the:
Our mission is to Recruit, Retain and Honor a World-Class Workforce to Serve the American People. OPM supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.


text:
All Firearms
Gun Parts
|Seller's Description
(AMG)This is a KBI import. A Hungary-made FEG double action. .380acp caliber. Bbl is 3.4" long. The bore is excellent. The s/n is 25067. The frame is alloy. The slide is steel. It is like the Walther PPH/S. The frame is painted black. It has a new magazine. I rate this gun at 86%. An FFL is needed. Pa resident? I need the sales tax. Will accept a money order or cashiers check. Buyer to pay $30.00 cost of handling/packing/insurance/shipping. Buyer must be 21 years of age and not prohibited by law to own this gun. US shipments only.
|Payment and Shipping Instructions:
Ships Using:


text:
Dodge Journey Problem Report
Dodge Journey Rough Idle After Cold Start With Code P050D Stored
(1 report)
Vehicles equipped with a V6 engine may develop a rough idle after cold start with the Check Engine Light illuminated and code P050D stored. Our technicians tell us a powertrain control module (PCM) software upgrade is available to correct this concern.
Related Items:
On vehicles equipped with V6 engines, the Check Engine Light may illuminate and code P0339 is s...
Replaced air box but problem continues. No codes. System is a manual single heat system.
What kind of battery will I need and who can rerplace it?
How can you get a dealership to look at your dodge when they say they can't do anything until a engine light comes on
When driving my transmission won't shift after it hits 40 miles
The uconnect radio suddenly died. Took to dealer they tried resetting it which did nothing. The...


text:
Investment in FTTx in Indonesia makes sense as operators significantly increase coverage
Webwire: Web giants sign privacy agreement; HP plans new tablet foray
February 24, 2012
Apple, Google, Amazon, Microsoft, RIM and HP have all signed a binding agreement to require themselves, and developers for their respective mobile or app store platforms, to disclose to mobile users how apps use private data before they are downloaded.
HP plans to launch a new tablet, running on the Windows 8 OS, and plans to differentiate the device from the iPad by tailoring it to business use. The vendor's last foray into the market ended in a $99 fire-sale due to disappointing traction against the iPad.
Deutsche Telekom has reported a €1.34 billion ($1.79 billion) quarterly loss, after taking a €3.3 billion impairment charge due to financial woes at its Greek business and the collapse of the sale of subsidiary T-Mobile USA to rival AT&T in the US.
China's ZTE plans to unveil eight new smartphones at next week's Mobile World Congress, as part of its push to become one of the top three handset vendors by 2015.
Australian ISP Dodo has confirmed that a "minor" routing fault on its network played a role in a brief outage of incumbent Telstra's international internet connectivity affecting millions of people.
Malaysia's Axiata Group Berhad has set an indicative dividend ratio of 65% for FY12, up from 30% in FY10 and 60% in FY11, but stressed that the actual payout will be contingent on its financial performance and cashflow needs.
Billionaire Sir Richard Branson has won a tussle against an Australian man for control of the web domain richardbranson.xxx, after the US-based National Arbitration Forum ruled that the name was registered in bad faith.
Dutch airline KLM is trialling a new service allowing travellers to use social network profile data to match them with a seatmate with similar interests.
Firms lack defenses for insider threats
Most security professionals rank employees as their primary concern
The logic of Indonesia's fixed-line broadband race
Stephen Wilson / Analysys Mason
Investment in FTTx in Indonesia makes sense as operators significantly increase coverage
We now have evidence that analytics can boost revenues, but it still contains an element of risk


text:
Moving Up 2012
Tomorrow I am trading my 2011 Silver Sport in for a 2012 Mineral Gray Sport!!!!! Finally found one with tow mirrors. Wish I could have gotten into a 13 but not enough in rebates!!!
I would've just bought tow mirrors, but congratulations!
I like the color better plus the nav and unconnect system better and I figured it will be my last truck I buy for awhile getting medical retired from military due to 2 open back surgery's. you only live once!!!
Nice. There are really good deals on '12s now. Why does everyone want tow mirrors? When I bought, I specifically did not want them. I already have a hard time parking, and getting into/out of my garage. Yes -- I know if you tow, you want them, but I'm guessing not everyone tows? I'd only want them if they were power-fold.
I also got out on medial retirement , there is a few things u should know and I will pm u if and when I get my post count up lol .
How many post do I need before I can pm people ? Maybe we need to start a medical retirement thread lol .
just curious what kind of rebates are they offering on 2012s, may have to follow your lead.
You need 25 posts I believe.
|All times are GMT -4. The time now is 05:52 PM.
Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2015, vBulletin Solutions, Inc.
= Copyright RamForumZ.com a Gigathreads.com Network Site =Ad Management by RedTyger


text:
Three New Berlin School Board members and two on the Muskego-Norway School Board are up for re-election in April.
On the New Berlin board, the terms of John Kegel, who is in his second term, and Tom David and Keith Hastings, both in their first terms, will expire.
Hastings said last week that he is undecided about another term, but, "I'm leaning toward it." David said Monday he had not decided. Kegel was available for comment by press deadline.
New Berlin School Board members serve for three year-terms and receive $3,500 annually, the same as last year. The board president receives $5,000.
On the Muskego-Norway board, the terms of Rick Petfalski, in his third term, and Brett Hyde, in his second, will expire in April.
Petfalski said he plans to seek a fourth term, saying he wants to help the district continue its track record of the last nine years of improving education while actually lowering property taxes for schools. Hyde was unavailable to comment by press deadline.
Effective after April's elections, the new annual salary for the Muskego-Norway board will be $4,195 for members and $4,545 for the board president.
Candidates for either board can file election papers from Monday until the filing deadline at 5 p.m. Jan. 2. New Berlin candidates can file at the District Office, 4333 S. Sunny Slope Road, and Muskego-Norway candidates at the Educational Services Center, W18763 Woods Road.
The election will be April 2. If a primary is needed, it will be held Feb. 19.
- Jane Ford-Stewart
This site uses Facebook comments to make it easier for you to contribute. If you see a comment you would like to flag for spam or abuse, click the "x" in the upper right of it. By posting, you agree to our Terms of Use.
E-mail Newsletter
Your link to the biggest stories in the suburbs delivered Thursday mornings.
Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter Get the Newsletter!
More from News and Features
- Another call to restrict boat traffic on Little Muskego Lake
- Wind Lake residents want Little Muskego Lake closed to boating to halt spread of invasive Stonewort
- GoPro video: Watch divers take on invasive algae in Little Muskego Lake (1)
- Scuba divers begin to battle invasive lake killer in Little Muskego Lake
- Driver accused in bicyclists deaths in Muskego released on bail
- Wauwatosa Things to Do: June 25
- Muskego Police hold pet calendar contest
- South Milwaukee man charged in deaths of two bicyclists in Muskego
- Lake Denoon Middle School up for $20,000 grant, but needs support
- New summer school classes brings in Muskego-Norway students


text:
Oliver Stone shooting 9-11 movie in LA
A continent removed from the scrutiny of scarred New Yorkers, Oliver Stone's film about 9/11 rescue workers is deep into its second month of principal photography. And crew members working round the clock are dressing one of the most sensitive movie sets imaginable.
The film, which as of now is to be called, simply, "World Trade Center," tells the story of two Port Authority police officers, John McLoughlin and Will Jimeno, who were the last two rescue workers pulled from ground zero alive. It is billed as an uplifting story about everyday New Yorkers helping one another amid a cataclysmic tragedy. So for 20 days in October and November, the cast and crew were in the New York metropolitan area, filming at the police desk in the Port Authority bus terminal and along the route the officers took downtown on the morning of Sept. 11, 2001. They filmed scenes on the Staten Island ferry, the Long Island Rail Road and a subway train in Brooklyn. They shot in Clifton, N.J., near Mr. Jimeno's house, and in other suburbs.
comments powered by Disqus
- 150 years later, schools are still a battlefield for interpreting Civil War
- Where are America's memorials to pain of slavery, black resistance?
- Richmond split over Confederate history
- The World's Jewish Population Is Nearing Pre-Holocaust Levels
- Bernie Sanders's Revolutionary Roots Were Nurtured in '60s Vermont
- Did a historian who said he's a victim of McCarthyism get the story wrong?
- Stephanie Coontz's work on the history of marriage cited by the Supreme Court.
- How Does It Feel To Have One's Work as a Historian Cited by the Supreme Court? Cool. Very Cool. Thank You Very Much.
- NYT History Book Reviews: Who Got Noticed this Week?
- David Hackett Fischer wins $100,000 prize for lifetime achievement in military writing


text:
Friday, June 22, 2007
0 Revelations:
|Do you have any comments? Add your revelations.
Subscribe to my feed OR Subscribe by email
Subscribe to: Post Comments (Atom)
Popular Posts
- How to Crimp Ethernet Cable aka Making Your Own Network Cable
- How To Set Photoshop Scratch Disk
- Mike the Headless Chicken
- Waktu Imsak, Berbuka Puasa dan Happy Ramadhan
- Color Scheme for Design
- Hung Like A Horse
- Happy Mid-Autumn Festival 2008
- Gary Ng aka garyng174 Blog
- DIY Change Casio Scientific Calculator Battery
- Big Apple Donut and Coffee at The Spring Kuching


text:
SVARLEYSA – EXPERIMENTAL NIGHT. Thursday 1 October 8 p.m. Hafnarhús – Reykjavik Documentary Workshop
An experimental night dedicated to documentaries, installation, readings and music in cooperation with Reykjavik Documentary Workshop. Performers are Katrín Ólafsdóttir, Steinunn Gunnlaugsdóttir, Emiliano Monaco, Bárujárn and more.
Printed of the web Reykjvik Art Museum, www.reykjvikartmuseum.is 04.34.2015