Please use this identifier to cite or link to this item:
Zhao, Tianshu
Matthews, Kent
Murinde, Victor
Year of Publication: 
Series/Report no.: 
Cardiff Economics Working Papers E2011/29
This paper attempts to evaluate the competitiveness of British banking in the presence of cross-selling and switching costs during 1993-2008. It presents estimates of a model of banking behaviour that encompasses switching costs as well as cross-selling of loans and offbalance sheet transactions. The evidence from panel estimation of the model lends support to our theoretical priors on the cross-selling behaviour of British banks, which helps explain the rapid growth of non-interest income during the last two decades. We also find that the consumer faced high switching costs in the loan market in the latter part of the sample period, as a result of lower competitiveness.
Document Type: 
Working Paper

Files in This Item:
946.29 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.