Competition and Efficiency in Banking: Behavioral Evidence from Ghana

27 Pages Posted: 9 Jan 2006

See all articles by Thierry D. BUCHS

Thierry D. BUCHS

State Secretariat for Economic Affairs (seco)

Johan Mathisen

International Monetary Fund (IMF)

Date Written: January 2005

Abstract

This paper assesses the degree of bank competition and discusses efficiency with regard to banks' financial intermediation in Ghana. By applying panel data to variables derived from a theoretical model, we find evidence for a noncompetitive market structure in the Ghanaian banking system, which may be hampering financial intermediation. We argue that the structure, as well as the other market characteristics, constitutes an indirect barrier to entry thereby shielding the large profits in the Ghanaian banking system.

Keywords: Ghana, banking competition

JEL Classification: G21, D43

Suggested Citation

BUCHS, Thierry D. and Mathisen, Johan, Competition and Efficiency in Banking: Behavioral Evidence from Ghana (January 2005). IMF Working Paper No. 05/17, Available at SSRN: https://ssrn.com/abstract=874238

Thierry D. BUCHS (Contact Author)

State Secretariat for Economic Affairs (seco) ( email )

Effingerstrasse 31
Bern, 3000
Switzerland
+41 31 324 0788 (Phone)

Johan Mathisen

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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