Market size and market structure in banking  

Sara Mohamed Abdulwahab Alfaihani, Oleg Badunenko, Shabbar Jaffry

Research output: Contribution to journalArticlepeer-review

Abstract

Larger markets are usually characterised by a large number of firms. We show this does not hold in banking. Our analysis of banking in Gulf countries suggests the existence of a lower bound to concentration. The bounds are different across countries, however, in all of them, the markets remain concentrated regardless of the market size. We also show that the largest banks are becoming more dominant over time. Most importantly, the values of the limiting levels and the actual levels of concentration are astonishingly close suggesting that the banking markets of the Gulf countries are operating close to long-run equilibrium.
Original languageEnglish
Article number101342
Number of pages23
JournalJournal of International Financial Markets, Institutions and Money
Volume72
Early online date20 Apr 2021
DOIs
Publication statusPublished - 1 May 2021

Keywords

  • Banking
  • Market Structure
  • Market Size
  • Concentration
  • GCC
  • Stochastic Frontier

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