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Testing for competition in the South African banking sector

Simbanegavi, Witness and Greenberg, Josh and Gwatidzo, Tendai (2012): Testing for competition in the South African banking sector.

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Abstract

This paper employs the Panzar and Rosse (1987) and the Bresnahan models to determine the level of competition in the South African banking sector. This level of competition was tested during the period 1998 to 2008 for the Panzar and Rosse approach and from 1992 to 2008 for the Bresnahan model. We �find evidence of monopolistic competition in the South African banking sector. Our fi�ndings are consistent with those of Bikker et al (2012) for South Africa.

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