US bank competition weaker than thought – St Louis Fed paper
Measuring off-balance sheet actives shows some banks have 10% more pricing power, says researcher
Including off-balance sheet revenues in pricing power measures suggests competition in the US banking sector could be less than previously thought, according to a researcher from the Federal Reserve Bank of St Louis.
In an economic letter, David Wheelock assesses a measure that calculates the degree of a firm’s pricing power, called the Lerner Index. He develops the measure to include the revenues banks generate from off-balance sheet activities.
Using data from the 10 largest US banks from
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com