IMF Working Papers

Competition and Efficiency in Banking: Behavioral Evidence from Ghana

By Johan Mathisen, Thierry D. Buchs

January 1, 2005

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Format: Chicago

Johan Mathisen, and Thierry D. Buchs "Competition and Efficiency in Banking: Behavioral Evidence from Ghana", IMF Working Papers 2005, 017 (2005), accessed April 19, 2025, https://doi.org/10.5089/9781451860368.001

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Banking, Commercial banks, Competition, Loans, State-owned banks

Keywords: Bank, Banking system, Market structure, WP

Publication Details

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