In this paper, I classified manufacturing industries in Korea by their degrees of informational opaqueness using the methods developed by Morgan(2002) and Bonaccorsi di Patti and Dell'Ariccia(2001). Then, I empirically investigated the effects of increase in banking market concentration on the resource allocation of banks to manufacturing industries. I found that the manufacturing industry with a higher degree of informational opaqueness received more loans from banks as the banking market becomes more concentrated in Korea, especially between 1998~2001. Between 1994~1997, this result holds, depending on the choice of the index of informational opaqueness.
Based on the result of this paper, it can be argued that the recent increase of banking market concentration in Korea should not be the subject of serious concern if the growth of our economy significantly depends on the industries using up-to-date technology, whose information is severely opaque. However, since there must be negative effect of the increase in banking market concentration, we have to investigate the optimal degree of banking market concentration in the future study.
은행산업 시장집중도 증가가 산업간 자원배분에 미치는 영향(The effects of increase in banking market concentration on the resource allocation of banks to manufacturing industries)
|Series Title; No||금융조사보고서 / 2003-06|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||한국금융연구원; KDI 국제정책대학원|