Empirical assessment of the competitive conduct of Nigerian banks in a post-consolidation era

Eze Osuagwu () and Ndubisi Nwokoma

Research in International Business and Finance, 2017, vol. 41, issue C, 412-422

Abstract: This paper is an empirical assessment of the level of competition in the Nigerian banking industry following the consolidation exercise, using a bank-level panel data, for the period 2005–2014. Empirical evidence from the Panzar and Rosse (1987) H-statistic reveals that market power in the Nigerian banking industry is consistent with monopolistic competition, which implies that firms are independent in their decision-making and conduct. This study innovates by incorporating non-interest income accounts in the assessment of revenue, and findings suggest that bank competitiveness decreases as revenue tends toward an inclusion of non-interest income or fee-based services.

Keywords: Bank competition; Bank consolidation; Banking reform; Panzar-Rosse H-statistic (search for similar items in EconPapers)
JEL-codes: D43 G21 L13 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:41:y:2017:i:c:p:412-422

DOI: 10.1016/j.ribaf.2017.04.051

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