Abstrakt
We analyze a unique dataset to test an empirical model of retail bank fee determinants in five Central European countries. Predictions from the literature on the most likely determinants of these fee levels form the basis of our model.
We find support for the Structure-Conduct-Performance hypothesis about the effect of industry concentration, the importance of differences in reliance on cashless payments, and differences in the labor intensity and technology level of the banks' operations. By showing that the cross-country differences in retail bank fees in our sample can be explained by fundamental economic factors, our analysis contributes to the ongoing debate on bank fee level in developing countries.