Competition and Efficiency in Banking: Behavioral Evidence from Ghana

By Thierry D. Buchs, J. Mathisen. Social Science Research Network, 2005

119 citations recorded by the source corpus.

This paper assesses the degree of bank competition and discusses efficiency with regard to banks' financial intermediation in Ghana. By applying panel data to variables derived from a theoretical model, we find evidence for a noncompetitive market structure in the Ghanaian banking system, which may be hampering financial intermediation. We argue that the structure, as well as the other market characteristics, constitutes an indirect barrier to entry thereby shielding the large profits in the Ghanaian banking system.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/2412d4e546ec24bf2d7eda8119053fc201033813

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Citations in the corpus

Competition and risk in South East Asian commercial banking (2012, result): “Others, in contrast, use the H-statistic to explain bank performance (Buchs and Mathisen, 2005) or, as we have already discussed, bank risk-taking behaviour (Schaeck et al.”
Credit Risk and Profitability of Selected Banks in Ghana (2012, background): “According to Buchs and Mathisen (2005), despite high overhead costs and sizable provisioning, due to huge NPLs, Ghanaian banks’ pretax returns on assets and equity are among the highest in the sub-saharan Africa.”
Country Creditor Rights, Information Sharing and Commercial Banks Profitability Persistence across the world (2007, methodology): “- 10 Returning to the banking industry, Mathisen and Buchs (2005) find evidences for a noncompetitive market structure in the Ghanaian banking system(6), which may be hampering financial intermediation.”