[雙語翻譯]外文翻譯--相對權(quán)力和效率是拉丁美洲銀行盈利能力的主要決定因素（英文）

1、Relative power and efficiency as a main determinant of banks’profitability in Latin AmericaJorge Guille ´n a,*, Erick W. Rengifo b,1, Emre Ozsoz c,d,2a Department of Economics, Escuela Superior de Administracion de

2、Negocios, ESAN Graduate School of Business, Lima, Perub Economics, Fordham University, New York, USAc Economics, FIT-SUNY, New York, USAd Center for International Policy Studies at Fordham University, USAAvailable online

3、 22 February 2014AbstractDespite the financial sector liberalization and openness that started in the earlier 90’s and significant macroeconomic development as well asincreasing inflow of capital toward the region, there

4、 is not any evidence of the reduction of interest rates as well as banks’ profits in Latin America. In this paper we develop a model to estimate the determinants of Latin American banks’ profitability and, try to underst

5、and the reasons why banks are reluctant to decrease their interest rate spreads even when change in competitiveness in the financial system is improving. By using Data Envelopment Analysis to better exploit the informati

6、on of several variables at the same time and, by employing a sample of 200 Banks located in Argentina, Bolivia, Brazil, Costa Rica, Ecuador, El Salvador, Mexico, Nicaragua, Paraguay, Peru, Uruguay and Venezuela; we find

7、that banks’ profits grew consistently above the normal levels of profits adjusted by risk. Our results show that banks in Latin America have been profiting from their oligopolistic position in detriment of their clients

8、in particular and of their whole economy in general. Copyright ? 2014, Borsa _ Istanbul Anonim ?irketi. Production and hosting by Elsevier B.V.JELS classification: C14; G21; G28Keywords: Data Envelopment Analysis; Latin

9、American banks; Banks’ profitability; Market concentration1. IntroductionDuring the 90’s most of Latin American economies startedto open their economies and to liberalize their financial sys- tems which were mostly contr

10、olled by their governments until then (Quispe-Agnoly respec- tively. Table 1 shows that besides the significant participation of foreign capital in the banking system, there is still an evident banking concentration: Th

11、e top 5 banks of each of the* Corresponding author. Tel.: þ51 1 317 7200; fax: þ51 1 345 1328. E-mail addresses: jguillen@esan.edu.pe (J. Guille ´n), rengifomina@fordham.edu (E.W. Rengifo), emre_ozsoz@ftny

12、c.edu (E. Ozsoz). Peer review under responsibility of Borsa _ Istanbul Anonim ?irketiProduction and hosting by Elsevier1 Tel.: þ1 718 817 4061; fax: þ1 718 817 3518. 2 Tel.: þ1 212 217 4929; fax: þ1 2

13、12 217 4641. 3 An additional form of capital inflow took the form of remittances.Available online at www.sciencedirect.comBorsa _ Istanbul ReviewBorsa _ Istanbul Review 14 (2014) 119e125http://www.elsevier.com/journals/b

14、orsa-istanbul-review/2214-8450http://dx.doi.org/10.1016/j.bir.2014.02.003 2214-8450/Copyright ? 2014, Borsa _ Istanbul Anonim ?irketi. Production and hosting by Elsevier B.V.Open access under CC BY-NC-ND license.Open acc

15、ess under CC BY-NC-ND license.determinants of banks’ profitability without discussing the relationship between competition-stability (fragility). We plan to work on this relationship as future research. Based on the issu

16、es described above, our starting hypoth- esis is that internal relative power and efficiency play against interest rates reductions in the Latin American case. In particular, we are interested about the relationship of b

17、anks’ concentration and efficiency in the system, which potentially can explain the reasons why interest rates did not decrease and, incorporate this knowledge to understand the de- terminants of banks’ profitability for

18、 a sample of banks in this region. For this, we use measures of efficiency, bank con- centration and relative power that may play important role in determining banks’ profitability.9 Recent literature such as Kasman and

19、Carvallo (2013) has also shown us that “banks with market power . seem to be able to pass on to customers the cost of raising capital buffers and provisioning for risk” which leads us to believe that we will find a signi

20、ficant rela- tionship between market power and efficiency. In addition, we analyze the latter variables under the four hy- pothesis claimed by Berger (1995) for an American dataset of banks. Three of them are: Relative M

21、arket Power (RMP), Struc- ture Conduct Performance (SCP) and Efficient Structure Econ- omy (ES). The Relative Market Power hypothesis claims that firmswithlargemarket sharesandwell-differentiatedproductsare able to exerc

22、ise market power (Monopolistic Competition). The Structure Conduct Performance asserts that concentration permit less favorable condition to consumers: low rates of deposits and higher loan rates.10 Finally, the Efficien

23、t Structure claims that size matter for profits because they are scale-dependent. Efficient Structure permit higher profits because a firm is able to produce at lower cost in comparison to their competitors. Our findings

24、 presented below suggest that efficiency accounts for most of the profitability attained by banks. However, our re- sults also show that concentration (measured as the natural log- arithm of banks’ total assets) is also

25、an important factor explaining banks’ profitability. This latter finding together with the fact that our efficiency measure considers banks’ manage- ment decision making process by incorporating the necessary input alloc

26、ation and product mix decision needed to attract de- posits and make favorable loans and investments, controlling at the same time for all risks (market, credit, liquidity, interest, inflation, among others), shows that

27、banks’ profits grew consis- tently above the normal levels of profits adjusted by risk, i.e. meaning that banks in Latin America have been profiting from their oligopolistic position in detriment of their clients in part

28、icular and of the whole economy in general. The paper is organized as follows. Section 2 presents a brief descriptionofthedatausedinthispaperandSection3developsthe model specification describing the Data Envelopment Anal

29、ysis used to construct our relative efficiency variable for Latin Amer- icanbanks,Section4describestheresultsandSection5concludes.2. DataThe data used in this paper comes from banks’ financial statements (balance sheets

30、and income statements). The banks in our simple are located in Argentina, Bolivia, Brazil, Costa Rica, Ecuador, El Salvador, Mexico, Nicaragua, Paraguay, Peru, Uruguay and Venezuela. Table 3 presents some descriptive sta

31、tistics of our sampled banks. It is important to note that Paraguay and Venezuela have lower shares of equity in comparison with their pairs in the region; however, their shares of deposits are higher. For Venezuela, the

32、 study period considers the time financial openness and control of capitals. As soon as our purpose is to understand what happened to the banking system in terms of efficiency and concentration and their impact on banks’

33、 profitability without considering “abnormal” or crises related periods, our dataset contains annual observations that covers the years 1989e2005.11 The period of analysis correspond to the period after financial opennes

34、s, the Asian and Russian Crisis that significantly hit the Latin American region and, just before the subprime or global financial crisis that started by mid-2007.12Moreover, we use macroeconomic data from the central ba

35、nks: Gross Domestic Product discount rates and exchange rates13 to account for market or systemic variability.3. Model specificationAs we mentioned before, there is a trade-off between concentration and efficiency in ban

36、king and, Latin American banks’ have not been the exception. Also, as observed in Ta- bles 1and 2, the liberalization and openness of the financial markets did not change the banking structure in the region.14The period

37、under study allow us to test the determinants of banks’ profitability based on the literature of concentration versus efficiency. We explore possible causes of banks’ reluctance to drop interest rates in an environment w

38、ith good macroeconomic performance as well as openness and financial liberalization and, social and political stability. In particular, our hypothesis is that if banks’ profits grew consistently above the normal levels o

39、f profits adjusted by risk, this could imply that banks are simply profiting from their oligopolistic posi- tion in detriment of their clients in particular and of the whole economy in general. In this section we describ

40、e the empirical model used to test the determinants of banks’ profitability exploiting the information on the trade-off between efficiency and concentration of the banking sector in the Latin America. Besides information

41、 on efficiency and concentration, we include in our model several bank-specific variables as well as9 Relative power means the bank local enforcement to handle higher shares of deposits and loans within the financial sys

42、tem of a particular country. 10 Basically RMP and SCP are classified as market power hypothesis and ES is under efficient hypothesis.11 In particular we have 2138 observations for the sample of 12 countries. 12 We were n

43、ot able to collect recent data. However, our scope is to show the structural changes in the Latin American banking system after financial openness and before the Global Financial Crisis. 13 GDP was the only significant v

44、ariable without collinearity problems in the estimation. 14 Basically the concentration of deposits and assets did not change for the pre and post liberalization periods.121 J. Guille ´n et al. / Borsa I_stanbul Rev