Imperfect but Hard Competition: the Portuguese Banking Sector in the Golden Age (1950-1973)


Table I Concentration ratios, various countries (CR5) (deposits), 1950-1975 (%)



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Table I

Concentration ratios, various countries (CR5) (deposits), 1950-1975 (%)




Canada

UK

France

Spain

Germany

Japan

USA

Portugal

1950

80

84

66

68

-

31

13

76

1955

80

84

70

65

27

29

14

70

1960

83

83

65

64

24

26

15

65

1965

86

81

66

58

25

23

14

68

1970

85

85

57

57

24

21

16

68

1975

81

70

60

51

24

20

18

67*

* 1973

Source: For Portugal, see Figure 3; for the remaining countries Revell (1987), except Spain, Pueyo (2003)



Table II

Cash reserves in Portuguese commercial banks,1950-1973 (% of overall deposits)

Panel A




Panel A




BESCL

BFSV/

BFB

BNU

BLA/

BTA

BBI

BPSM

BPA

BESCL

BFSV/

BFB

BNU

BLA/

BTA

BBI

BPSM

BPA

1950

38.01

26.30

31.28

30.21

27.60

31.60

29.16

23.04

15.94

18.96

18.31

16.73

19.15

17.67

1951

33.66

27.17

34.16

26.29

30.45

26.37

23.53

19.76

15.95

20.05

15.43

17.87

15.47

13.81

1952

25.24

27.66

32.68

25.22

27.32

26.90

31.58

14.21

15.57

18.40

14.20

15.38

15.14

17.78

1953

36.29

33.55

36.94

27.39

27.68

30.03

25.32

20.78

19.21

21.15

15.68

15.85

17.19

14.50

1954

32.77

29.89

46.67

22.70

24.06

23.05

28.67

19.20

17.51

27.35

13.30

14.10

13.51

16.80

1955

25.62

26.74

43.77

20.84

22.66

23.01

30.87

15.50

16.18

26.48

12.61

13.71

13.92

18.68

1956

29.35

30.54

41.07

20.83

20.86

23.84

23.98

18.12

18.85

25.35

12.86

12.88

14.72

14.80

1957

24.59

26.92

34.34

20.46

21.18

21.49

20.93

14.57

15.94

20.34

12.12

12.55

12.73

12.40

1958

26.49

26.94

31.05

19.46

20.25

21.33

22.73

16.08

16.48

18.85

11.82

12.30

12.95

13.80

1959

22.23

26.97

25.73

19.20

16.15

22.54

20.40

14.03

17.02

16.24

12.12

10.19

14.23

12.88

1960

17.05

16.92

21.38

18.59

13.38

23.13

15.68

12.72

12.62

15.95

13.87

9.99

17.26

11.70

1961

14.75

16.67

26.01

15.39

14.29

22.75

17.32

11.77

13.29

20.75

12.28

11.40

18.14

13.81

1962

16.39

15.42

24.54

13.91

13.88

17.79

17.39

16.39

15.42

24.54

13.91

13.88

17.79

17.39

1963

15.81

13.23

19.20

14.79

12.21

17.89

16.91

15.81

13.23

19.20

14.79

12.21

17.89

16.91

1964

14.15

17.02

17.28

16.27

13.14

17.53

14.07

14.15

17.02

17.28

16.27

13.14

17.53

14.07

1965

11.61

16.17

16.81

15.69

11.25

16.59

12.68

11.61

16.17

16.81

15.69

11.25

16.59

12.68

1966

12.70

15.88

14.30

17.37

13.48

18.32

17.79

12.70

15.88

14.30

17.37

13.48

18.32

17.79

1967

15.49

13.45

13.31

20.69

18.35

16.78

15.83

15.49

13.45

13.31

20.69

18.35

16.78

15.83

1968

14.47

11.06

10.92

20.20

18.46

19.34

18.68

14.47

11.06

10.92

20.20

18.46

19.34

18.68

1969

13.85

16.53

12.33

20.06

19.12

18.13

17.85

13.85

16.53

12.33

20.06

19.12

18.13

17.85

1970

14.87

16.00

17.35

20.08

17.61

15.76

13.40

14.87

16.00

17.35

20.08

17.61

15.76

13.40

1971

13.45

19.74

17.08

20.10

14.99

13.73

13.43

13.45

19.74

17.08

20.10

14.99

13.73

13.43

1972

14.03

16.31

16.44

18.38

18.07

17.44

13.75

14.03

16.31

17.48

18.38

18.07

17.44

13.75

Note: Until 1959, commercial banks’ annual reports separated only cash from deposits in other banks, in these being included the Bank of Portugal. Thus, in order to separate deposits at the Bank of Portugal from those in other banks, we had to use the Bank of Portugal’s annual reports. The figures in these reports are not disaggregated by bank though. To obtain the estimate presented here an aggregate ratio between deposits at the Bank of Portugal and in other banks was calculated. This ratio was then applied to the figures provided by the various banks’ annual reports (the ones in Panel A). The assumption here is that the proportion between deposits at the Bank of Portugal and deposits in other banks was, for each year, the same in all banks.
Sources: Banco Borges & Irmão (1950-1973), Banco Espírito Santo & Comercial de Lisboa (1950-1973), Banco Fonsecas, Santos & Viana (1950-1967), Banco Fonsecas & Burnay (1968-1973), Banco Lisboa & Açores (1950-1969), Banco Nacional Ultramarino (1950-1973), Banco Pinto & Sotto Mayor (1950-1973), Banco Português do Atlântico (1950-1973), Banco Totta & Açores (1970-1973).

Figure 6

Average interest rate on deposits (seven largest commercial banks), 1950-1973 (%)

Sources: see Table II.


Figure 7

Proportion of time deposits in total deposits (seven largest commercial banks), 1950-1973 (%)

Source: see Table II




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