Wpływ kapitału zagranicznego oraz własności państwowej na zmiany konkurencji w polskim sektorze bankowym
The impact of foreign capital and state capital on competition in the Polish banking sector

Summary/Abstract: The aim of this study is to estimate the impact of foreign capital on competition and concentration. The Lerner index has been used as a mesure of competition. Concentration was analysed using concentration indices (i.e., concentration ratios [CR5] and the Herfindal- Hirschman indices [HHI]). Before the financial crisis, a wave of mergers and acquisitions, which also affected the banking sectors of Central and Eastern Europe, resulted in a decrease of the role of the state in the banking sector, including its role in the Polish banking sector. Empirical analysis shows that foreign capital had positive impact on competition indices in the period 1997-2009. For the period 2010-2012 the results are ambiguous. The same channels (prior to and during the financial crisis), which impacted changes in competition within the banking sectors of euro zone countries, had an impact on the Polish banking sector due to the involvement of capital from the euro zone.

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