Bank Market Structure and Competition in Africa

James Ntiamoah Doku (), Emmanuel Mensah (), Zangina Isshaq () and Charles Adjasi
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James Ntiamoah Doku: University of Professional Studies, Accra
Emmanuel Mensah: Absa Bank Ghana
Zangina Isshaq: University of Ghana, Legon

Chapter Chapter 3 in The Economics of Banking and Finance in Africa, 2022, pp 61-100 from Palgrave Macmillan

Abstract: Abstract This assesses the market structure of the banking sector and competition in Africa using a sample of 365 banks from forty (40) countries in Africa covering the period, 2000–2015, with a panel data analytic approach following the Panzar-Rosse (1987) methodology. The study found that the African banking sector is characterised by monopolistic competition. This implies that, though banks produce homogenous products, they have the ability to adjust their prices upward using unique strategies of image branding, distinct product and service offerings and good customer relationships. Thus, it is recommended that regulatory reforms should be geared towards introducing credit information sharing among participants in the banking sector in order to reduce the monopolistic power of banks, thereby, enhancing competitive behaviour and efficiency of banking operations.

Keywords: Bank Market Structure; Competition; Africa (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-04162-4_3

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DOI: 10.1007/978-3-031-04162-4_3

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