Testing the contestability in Kuwait banking industry
Purpose – The two aims of this paper are: first, to investigate the market structure of Kuwait banking industry and second, to evaluate the monopoly power of banks during the years 1993-2002. Design/methodology/approach – The paper examines the market structure 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 using the H- statistic by Panzar and Rosse. Findings – Both of the concentration indices indicate that Kuwait had moderately concentrated market. The Panzar and Rosse H-statistic suggests that Kuwait banks operate under perfect competition. Practical implications – Kuwait Central Bank should be very cautious in granting mergers among banks, in particular among large core banks. The results also suggest that Kuwait Central Bank should stop granting permission to banks to open new branches because the country is over branched. Originality/value – This original paper investigates the market structure of Kuwaiti banking industry and evaluates the monopoly power of banks during 1993-2002.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (2008)
Issue (Month): 4 (September)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://emeraldgrouppublishing.com/products/journals/journals.htm?id=sef Email:
When requesting a correction, please mention this item's handle: RePEc:eme:sefpps:v:25:y:2008:i:4:p:252-266. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister)
If references are entirely missing, you can add them using this form.