Analysis of Competitiveness in Qatar Banking Industry (original) (raw)

The Competition and Market Structure in the Saudi Arabia Banking

The purpose of this paper is twofold: to investigate the market structure of Saudi Arabia banking industry; and to evaluate the monopoly power of banks during the years 1993-2006. Design/methodology/approach – The paper is examining the market structure using the most frequently applied measures of concentration k-bank concentration ratio (CRk) and Herfindahl-Hirschman Index (HHI) and it is evaluating the monopoly power of banks using the “H-statistic” by Panzar and Rosse.

Market structure and competitive conditions in the Arab GCC banking system

Journal of Banking & Finance, 2006

This paper investigates the market structure of Arab GCC banking industry during the years of 1993-2002 using the most frequently applied measures of concentration k-bank concentration ratio (CRk) and Herfindahl-Hirschman Index (HHI) and evaluates the monopoly power of banks over the ten years period using the 'H-statistic' by Panzar and Rosse. The results show that Kuwait, Saudi Arabia and UAE have moderately concentrated markets and are moving to less concentrated positions. The measures of concentration also show that Qatar, Bahrain and Oman are highly concentrated markets. The Panzar-Rosse H-statistics suggest that banks in Kuwait, Saudi Arabia and the UAE operate under perfect competition; banks in Bahrain and Qatar operate under conditions of monopolistic competition; and we are unable to reject monopolistic competition for the banking market in Oman.

The Degree of Competition in the UAE Banking Industry

International Finance and Banking, 2017

This paper has made an attempt to assess the degree of competition (or market structure) in the UAE banking sector using the H-statistics established by Panzar-Rosse (1987). Data of six years (2009-2015) have been extracted from various balance sheet and income statements of the banks. Pooled OSL estimator was used to obtain the coefficient. The inputs prices were found to be significant except the input price of labor. Total asset was registered to be positively significant. All other variables were not significant. The results of the study reveal that the UAE banking market structure is characterized by the monopolistic competition. That is, banks earned their revenue as if operating under conditions of monopolistic competition during this period. A robust check was performed to test for validity of PR-model. The results yield E-statistic which is consistent with long-run equilibrium. It is believed that both the small and the larger banks operate relatively equal more in a compet...

Concentration and Competition in Oman‟s Banking Sector: Implications for Financial Stability

Both the country experiences and the academic debate suggest that concentration and competition have ambiguous effects on financial stability and as such, there is no clear conclusion on the validity of either the competition-stability or the competition-fragility hypotheses. However, it would not be entirely correct to either conclude that these two different strands of the literature yield opposing predictions regarding the effects of competition and market power on banking stability. The visible "trade-off" needs to be addressed by suitable revisit of the "binding constraint" which in this case could be the regulatory competition policy. The standard response to conflicting theoretical predictions is to let the data speak and that is what was done for Oman in this paper.

Market Concentration and Market Share’s Effects on the Financial Performance of Jordanian Banks

International journal of academic research in business & social sciences, 2022

This study explores market concentration and market share and their impact on both short and long-term financial performance of Jordanian banks. Autoregressive Distributed Lag (ARDL) method was used to analyse annual bank data from 2006-2020 to illustrate the impact of market concentration and market share on the financial performance of the Arab Bank and the Housing Bank for Trade and Finance. Results found market concentration's negative and significant impact on the short and long-term rate of return on assets for both the Arab Bank and the Housing Bank for Trade and Finance. This contradicts with the Structure-Conduct-Performance hypothesis and therefore excludes collusive behavior between banks mostly concentrated in the Jordanian banking market. The market share of deposits also has a short and long term positive and significant impact of on the rate of return on assets for both the Arab Bank and Housing Bank for Trade and Finance coinciding with the Traditional Efficiency hypothesis in the Jordanian banking market. We recommend inviting Jordanian banks to study their environmental influences, and raise employee efficiency and technological adaptability to competitively participate in the larger banking industry, thus improving their own performance.

Banking Competition and Efficiency in Jordan: A Note

International Journal of Banking and Finance, 2013

The financial economics literature contains numerous research papers which examine issues that concern the banking industry. One of these issues is banking competition. Indeed, this issue is important because of its implications to financial stability and the growth of the borrowing firms. The purpose of this paper is to assess the competitive behavior of the Jordanian banking sector during the period ranging from 1999 to 2008 using the nonstructural test developed by Panzar and Rosse. In more specific terms, this paper examines the overall competitive condition during the period 1999-2008 and how it has evolved over time. Based on the empirical findings, it is expected that a number of policy recommendations may be provided. The objective of these recommendations is to enhance the regulation of the banking sector in Jordan and improve their performance.

The Evolution of Bank Competition: Have Conditions Changed in the Jordanian Banking Sector?

The primary aim of this paper is to measure competitiveness in the Jordanian banking sector. In addition, this paper examines the competitive dynamics in this sector. Based on panel data analysis and the time period 2000-2014, the estimation results indicate that Jordanian banks operate under monopolistic conditions and this has not changed during the period of the study. Naturally, the findings of this paper have a number of implications. This is based on the literature which argues that bank competition influences, for example, real economic growth, manufacturing productivity growth, and the lending channel of banks.

Assessing the Competition in the Jordanian Banking Sector by Using Panzar-Rosse Approach

2016

This paper aimed at assessing the levels of competition in the Jordanian banking sector, using the so called Panzar-Rosse model. The study used a sample of 13 Jordanian commercial banks listed on Amman Stock Exchange during the time period 2009-2015.Pooled data regression was used to measure the level of competition among Jordanian banking. The major findings indicated that the computed H statistic for the sample was 0.3111, indicating that the Jordanian banking sector is under monopolistic competitive nature, but still close to the monopoly market with high concentration and low competition among banks.

Does Financial Competition AffectProfitability: A case study of Banks in Oman

Addaiyan Journal of Arts, Humanities and Social Sciences, 2022

Globally the banking sector is considered one of the most important and sensitive sectors of the economy. The banking sector makes a direct impact on an economy which can be seen reflected in the volume and quality of economic activities. On the contrary, the kind of financial services provided by commercial banks during a certain time cannot be an indicator to measure banks’ efficiency or performance. Through this study, researchers investigate the impact of financial competition on the profitability of banks operating in the Sultanate of Oman. To reach the proposed adjectives, two variables were conducted; one was an independent variable named “Financial Competition” and one was a dependent variable named “Bank Profitability”. Hence, it is necessary to analyze and know the market share of the bank to identify the extent of its ability to compete in the banking sector and then determine its efficiency in the financial market. These motivated researchers to analyze the impact of market share as an indicator of financial competition on the profitability of banks in the Sultanate. The research was conducted quantitative research using financial ratio analysis.The banking industry is a competitive environment in the financial domain, so most banks seek to be the best among their competitors. Keywords:Financial Competition, Bank Profitability, Banks