Abstract This study provides a characterization of the Association of the South East Asian Nations (ASEAN) banking system’s competition under the new environment that the implementation of the Financial Integration Framework (AFIF) implies. We focus on the largest banking markets in the region, represented by the ASEAN-5. The period under study is 2007–2016, covering the preparation period of the ASEAN banks to fully implement the new Banking Integration Framework (ABIF) in 2020. Panzar and Rosse non-structural approach is utilised to measure the competition level. Following Goddard and Wilson’s (2009) disequilibrium approach, the test for the dynamic competition measure is also conducted as a robustness check. We examine the evolution of the banking competition by observing the trend of the competition level using a rolling estimation with a 5-year window. This paper also investigates the factors that may influence the competitive conditions, specifically controlling for structural conditions and institutional characteristics. Our main findings confirm that banks operate under monopolistic competition, although there is still a high level of heterogeneity among the ASEAN countries’ banking market and banking integration sure is a challenging objective for the region. Our results reveal a positive relationship between density of demand, concentration and competition.

中文翻译：

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银行竞争与区域一体化：来自东盟国家的证据

摘要这项研究提供了在新环境下实施金融一体化框架（AFIF）所暗示的东南亚国家联盟（ASEAN）银行系统竞争的特征。我们专注于以东盟五国为代表的该地区最大的银行市场。研究期为2007年至2016年，涵盖了东盟银行准备在2020年全面实施新的银行业整合框架（ABIF）的准备期。采用Panzar和Rosse非结构性方法来衡量竞争水平。按照戈达德和威尔逊（2009）的不平衡方法，动态竞争测度的检验也作为稳健性检验进行。我们通过使用具有5年时间范围的滚动估算来观察竞争水平的趋势，从而检验银行业竞争的演变。本文还研究了可能影响竞争条件的因素，特别是控制结构条件和制度特征。我们的主要调查结果证实，尽管东盟国家的银行市场之间仍然存在高度异质性，并且银行一体化对于该地区而言是具有挑战性的目标，但银行仍在垄断竞争下运作。我们的结果表明需求密度，集中度和竞争之间存在正相关关系。我们的主要调查结果证实，尽管东盟国家的银行市场之间仍然存在高度异质性，并且银行一体化对于该地区而言是具有挑战性的目标，但银行仍在垄断竞争下运作。我们的结果表明需求密度，集中度和竞争之间存在正相关关系。我们的主要调查结果证实，尽管东盟国家的银行市场之间仍然存在高度异质性，并且银行一体化对于该地区而言是具有挑战性的目标，但银行仍在垄断竞争下运作。我们的结果表明需求密度，集中度和竞争之间存在正相关关系。