Competition in the Indian Banking Sector: A Panel Data Approach

Zhiheng Li, Shuangzhe Liu, Fanda Meng and Milind Sathye
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Zhiheng Li: Faculty of Science & Technology, University of Canberra, Canberra, ACT 2617, Australia
Shuangzhe Liu: Faculty of Science & Technology, University of Canberra, Canberra, ACT 2617, Australia
Fanda Meng: Faculty of Science & Technology, University of Canberra, Canberra, ACT 2617, Australia
Milind Sathye: Faculty of Business, Government and Law, University of Canberra, Canberra, ACT 2617, Australia

JRFM, 2019, vol. 12, issue 3, 1-16

Abstract: The paper aims to assess the level of competition in the Indian banking sector overall as well as within the three groups of banks: foreign owned, state owned (public sector), and privately owned. We use panel data for the period from 2005–2018. We found that the overall competition in the Indian banking sector is strong, although there are differences by type of bank ownership. The Indian banking market continues to be characterized by monopolistic competition. The various policy measures taken by the Indian government in recent years appear to have helped boost competition. A policy suggestion would be to further liberalize the banking sector for foreign investment.

Keywords: competition; Indian banking sector; panel data (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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