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

Onanuga, Abayomi and Oshinloye, Michael and Onanuga, Olaronke (2015): Is the Nigerian Commercial Banking Industry Experiencing any Competition? An Empirical Approach. Published in: The Journal of Banking and Finance , Vol. 13, No. 1 (31 January 2017): pp. 54-68.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: competition, banks, concentration-ratio
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D49 - Other; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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