Multimarket Competition and Profitability: Evidence from Ukrainian banking
Journal: Universitas Pasundan institutional repositories & scientific journals (Universitas Pasundan)
Year: 2016

This paper examines the impacts of non-price competition on bank performance in the Ukrainian banking industry from 2009 Q1 to 2015 Q4. The competition is proxied by three measures of multimarket contacts. Our data reveal that banks with higher level of multiple market contacts are more likely to be profitable. The findings support the mutual forbearance hypothesis. When banks compete with rivals that are similar in size in multiple markets, they have incentives to cooperate instead of competing