PUBLIC BANKS AND BANKING COMPETITION

Castor, Kamaiaji de Souza

doi:10.1590/198055272623

Kamaiaji de Souza Castor

Doutor em Economia pelo Instituto de Economia da Universidade Federal do Rio de Janeiro (UFRJ). Rio de Janeiro, RJ, Brasil.

https://orcid.org/0000-0003-4901-7586

Correspondência para: Kamaiaji de Souza Castor Contato: kasouza@hotmail.com

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Figure 1
Nash Equilibrium

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Figure 2
TJLP (funding cost) and base rate, 2002-2017

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Figure 3:
Market Share on South Region, 2002-2017

Note: For a more suitable visualization, we consider average annual market share for the Top 4: BB, BRDE, BADESUL and Itau. Blue Line is the market share sum of the others private banks.

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Figure 4
Market share on São Paulo, 2002-2017

Note: For a more suitable visualization, we consider average annual market share for the Top 4: BB, ITAU, SANTANDER and BRADESCO. Blue Line is the market share sum of the others private banks.

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Figure 5
Bank spreads on the South, 2002-2017

Note: “ES” after the bank’s name stands for the local market considered. On the South market, on 2016q2, the average margin of BB was 5.6%. After this quarter, the average was 12.9%. This is in line with adjustment (“cleaning”) on the portfolio made by the new government. We control for this variation using a dummy variable for this period.

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Figure 6
Bank spreads margin on São Paulo, 2002-2017

Note: “SP” after the bank’s name stands for the local market considered. On the São Paulo market, in 2015q4, BB did not make any loans on this credit line. This is in line with adjustment (“cleaning”) on the portfolio made by the new government. We can see also a great positive variation after 2016q2 as occurred in the South region. We control for this variation using a dummy variable for this period.

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Table 1
Descriptive Statistics: BNDES Automático, 2002-2017

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Table 2
Margins: state banks in and out of period (DT)

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Table 3
Margins: private banks in and out of period (DT)

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Table 4
TJLP: in and out of period (DT)

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Table 5
Market share: Banco do Brasil in and out of period (DT)

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Table 6
Margin: Banco do Brasil in and out of period (DT)

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Table 7
HHi: in and out of period (DT)

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Table 8
BNDES Automático: models, 2002-2017

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Table 9
BNDES Automático: models, 2007-2017

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Table 10
BNDES Automático: models, sensitivity analysis, 2007-2017

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(8)

	Spread	TJLP	Market Share	Hhi	Industrial Production Index (PIM)
Mean	5.65	7.25	0.08	0.23	5.11
Standard Deviation	2.14	1.94	0.11	0.08	0.55
Min	1.46	5	0	0.13	4.32
Max	19	12	0.70	0.52	5.79
N	1624	1624	1624	1624	1624

DT	Mean	Standard Deviation	N
0	6.36	2.18	283
1	5.12	1.23	236

DT	Mean	Standard Deviation	N
0	6.0	2.46	586
1	5.0	1.83	519

DT	Mean	Standard Deviation	N
0	8.6	1.78	869
1	5.7	0.48	755

DT	Mean	Standard Deviation	N
0	0.13	0.06	71
1	0.30	0.15	56

DT	Mean	Standard Deviation	N
0	6.98	3.03	71
1	4.99	1.58	56

DT	Mean	Standard Deviation	N
0	0.23	0.08	869
1	0.25	0.06	755

Variable	OLS	FE-IV	SYS 1 GMM	SYS2 GMM
Spread_t-1	0.62^***	0.81^***	0.60^***	0.62^***
$\sum_{j \neq i} r_{j, s, t}$	0.01^***	0.11^**	0.01^***	0.01^**
$\sum_{j \neq i} r_{j, s, t - 1}$	-0.00	-0.14^**	-0.00	-0.00
Production Index_t	-4.42^**	-13.17^**	-4.58^**	-4.49^*
Production Index_t-1	4.26^**	13.24^**	4.16^**	4.14^*
Dummy 2016	-0.31	0.21	0.10	-0.17
Constant	7.26^**	3.51^***	2.87^**	4.21^***
N	809	686	686	686
T	64	60	60	60
R2	0.725
Hansen-Sargan			33.53	33.53
AR(1) pvalue			0.001	0.001
AR(2) pvalue			0.139	0.147
F-Statistics	195.658	156.179	136.86	48.01
First Stage F Test Sanderson-Windmeijer		7.91

Variable	OLS	FE-IV	SYS 1 GMM	SYS2 GMM
Spread_t-1	0.67^***	0.76^***	0.55^***	0.52^***
$\sum_{j \neq i} r_{j, s, t}$	0.01^**	0.06^*	0.01^*	0.01^*
$\sum_{j \neq i} r_{j, s, t - 1}$	-0.01	-0.07^**	-0.01	-0.01
Production Index_t	-2.25	-8.09^*	-3.84^**	-4.65^*
Production Index_t−1	2.19	8.37	3.66^**	4.71^*
Dummy 2016	-0.24	0.80	0.85^***	0.91^**
Constant	4.41^***	2.11^***	4.91^***	3.98
N	535	461	461	461
T	22	18	18	18
R2	0.673
Hansen-Sargan			21.46	21.46
AR(1) pvalue			0.001	0.002
AR(2) pvalue			0.029	0.042
F-Statistics	195.658	156.179	166.20	48.01
First Stage F Test Sanderson-Windmeijert		25.64

Variable	SYS 1 GMM	SYS2 GMM
Spread_t-1	0.99^***	0.98^***
$\sum_{j \neq i} r_{j, s, t}$	0.01^**	0.01^*
$\sum_{j \neq i} r_{j, s, t - 1}$	0.01	0.03
Production Index_t	-1.44^**	-7.59^**
Production Index_t−1	5.12^**	1.20
Dummy 2016	1.05^**	1.21^**
Constant	1.71^***	6.71
N	461	461
T	56	56
Hansen-Sargan	31.46	41.26
AR(1) pvalue	0.001	0.001
AR(2) pvalue	0.059	0.082
F-Statistics	258.20	79.01

[1] Correspondência para: Kamaiaji de Souza Castor Contato: kasouza@hotmail.com

Brasil

Brasil

PUBLIC BANKS AND BANKING COMPETITION

BANCOS PÚBLICOS E COMPETIÇÃO BANCÁRIA

ABSTRACT