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Competition and Concentration in Bangladeshi Banking Sector

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  • Anwar Hossain Repon
  • Zahidul Islam

Abstract

The purpose of this paper is to investigate the market structure and degree of concentration of Bangladeshi banking industry. The study measured market concentration by using widely recognized measures like k-bank concentration ratio and Herfindahl-Hirchman Index (HHI). It evaluates market structure by applying Panzar-Rosse Model over 8 years period from 2006 to 2013. The result of concentration measures indicates a decreasing trend and low level of market concentration in Bangladeshi banking industry over the sample period. The panzer-Rosse “H-Statistic†suggests that banks in Bangladesh are operating under monopolistic competition. Present paper contributes to a burgeoning literature on banking competition that has evolved significantly over the past periods on a developing country perspective like Bangladesh.

Suggested Citation

  • Anwar Hossain Repon & Zahidul Islam, 2016. "Competition and Concentration in Bangladeshi Banking Sector," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 5(1), pages 16-29, January.
    • Handle: RePEc:rbs:ijfbss:v:5:y:2016:i:1:id:358
    DOI: 10.20525/ijfbs.v5i1.44
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