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Methodology for assessing the competitiveness of the banking environment: a marginal aspect

Vol. 14, Iss. 2, JANUARY 2015

PDF  Article PDF Version

Available online: 18 January 2015

Subject Heading: METHODS OF ANALYSIS

JEL Classification: 

Pages: 11-27

Ezrokh Yu.S. Novosibirsk State University of Economics and Business Administration, Novosibirsk, Russian Federation
ezroh@rambler.ru

Subject The article studies the methodological peculiarities of quantitative analysis of competitiveness of the banking business environment.
     Objectives The aim of the study is to develop methodological foundations of assessment of competitiveness of the banking environment as the extent of the objective functions of competition in banking competitive market. The tasks are as follows: to analyze the most famous foreign approaches; to define debatable provisions of the existing theories; to form a theoretical-methodological basis of assessment of competitiveness of the banking environment; to develop scientific thought of the leading scientists by establishing the author's approach; to develop an executable and adequate methodology for assessing the competitiveness and its approbation.
     Methods The theoretical-methodological designs are based on the analysis and synthesis of scientific knowledge in the study area contained in the works of the leading domestic and foreign scholars. The quantitative analysis is based on the well-known economic-statistical methods, adapted to meet the challenges.
     Results I have developed and justified a methodological approach to the evaluation of competitive banking environment, including the theoretical and methodological basis and methodology for a study aimed at exploring the degree of homogeneity of the marginal income of independent credit institutions. As a part of its performance, I have defined the key segments of the analysis of the net margin income per unit; introduced indicators of competitiveness of the banking environment, based on the coefficient of variation and the extent of variation; used an exponential coefficient based on reducing the influence of historical data. The methodology provides statistical grouping by priority business strategies of banks (corporate, retail, universal) with the following integration of results.
     Conclusions and Relevance Based on calculations of the competitiveness of the banking environment in 2012-2014, I concluded of the low assessment of policy environment, as well as the segments of corporate and universal banks with a positive trend and forecast on the basis of significant polynomial regression equations, and the relatively high level of competitiveness in the retail segment with a mixed trend and a negative outlook. The results are relevant to study macroeconomic frame-related parameters of the banking sector in Russia.

Keywords: bank, competition, competitive environment, marginal profitability, score competition

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