Working Paper 168 - Competition and Market Structure in the Zambian Banking Sector

摘要: Studies on banking competition in developing countries, and especially Africa, are sparse. This study evaluates the degree of Zambian sector wake dynamic market shifts induced by entry new foreign banks privatisation state-owned bank. Using a detailed bank-level panel data set, we measure using H-statistic time varying Lerner index. The estimation index provides first ever documented empirical evidence evolution industry. is important assessing influence competitiveness. For H-statistic, results show that earned their revenue under conditions monopolistic competition. finding corroborated estimate which suggests competitiveness may not be as low previously understood. shows risk taking, diversity regulatory intensity all determinants power. Tight monetary policy also found to strengthen banks’ exercise Generally, findings lend support previous research suggesting increased bank penetration divestiture state ownership can heighten competitive pressures sector. Thus, main lessons drawn from analysis could further enhanced easing impediments long-run, allowing more participation spur conduct