Competencia y estabilidad en el sistema bancario: evidencia empírica para el Ecuador durante el periodo 2001-2016

Abstract

The empirical studies that relate the level of competition and stability show that a financial market can be under the "competition-stability" approach or otherwise under the "competition-fragility" approach. The objective of this research is to determine the relationship between competition and stability in the banking system of Ecuador for the period 2001-2016 using the methodology of Martinez - Miera and Repullo (2008) for panel data. For this purpose, the calculation of the concentration indicators (IHH, CR3 and CR4), the estimation of the level of competence (statistical H of Panzar and Rosse) and the ratio of unpaid loans (NPL) as an indicator of stability measured by the level of portfolio risk. Specific variables of each national private bank and the GDP growth rate were included. The results for the research period indicate that there is a trading off between the level of competition and financial stability, a structure of monopolistic competition and a moderate level of concentration is also evident.