Is the Nigerian Commercial Banking Industry Experiencing any Competition? An Empirical Approach

Abayomi Onanuga, Michael Oshinloye and Olaronke Onanuga ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper investigates the level of competition in the loans and deposit market of the Nigerian commercial banking sector in the post re-capitalization period 2007- 2011 using Herfindahl-Hirschman Index (HHI) and Concentration Ratio (CR). The weighted average reveals that in the deposit market 3 banks control 39.4% and in the loans market 2 banks provide 19%. The HHI result of 1073 in the deposit market and 2419 in the loans market infers that the level of competition is higher in the deposit market than the loans market. The Nigerian banking industry is neither highly competitive nor experiencing acute market concentration.

Keywords: competition; banks; concentration-ratio (search for similar items in EconPapers)
JEL-codes: D49 G21 (search for similar items in EconPapers)
Date: 2015-12-18, Revised 2016-04-15
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Published in The Journal of Banking and Finance 1.13(2017): pp. 54-68

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:83333

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