A new measure of competition in Indian loan markets

Jugnu Ansari
Additional contact information
Jugnu Ansari: Assistant Adviser, CAFRAL,C-7, RBI, Bandra-Kurla Complex, Bandra(East), Mumbai –400051, India

International Journal of Finance & Banking Studies, 2013, vol. 2, issue 4, 60-77

Abstract: This study examines bank competition in the loan markets in India using a new competitiveness index, the Augmented Relative Profit Difference (ARPD). The ARPD quantifies the impact of marginal costs on performance, measured in terms of market shares. The theoretical foundation of the ARPD is robust when compared to other conventional measures. Applying this unbiased competition indicator to loan markets shows that financial reform has contributed to significant improvements in competition.Public sector banks and private sector banks are more competitive than foreign banks too. In addition, we find that the Indian loan markets are monopolistic in nature.

Keywords: Loan market; Competition; Marginal Cost; Banking Industry (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/416/369 (application/pdf)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/416 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rbs:ijfbss:v:2:y:2013:i:4:p:60-77

Access Statistics for this article

International Journal of Finance & Banking Studies is currently edited by Prof.Dr.Hasan Dincer

More articles in International Journal of Finance & Banking Studies from Center for the Strategic Studies in Business and Finance IJFBS Editorial Office, IMU, School of Business. Contact information at EDIRC.
Bibliographic data for series maintained by Hasan Dincer ().