Research assistance by William Brafu-Insaidoo is gratefully acknowledged.
The Competitiveness of Commercial Banks in Ghana
Version of Record online: 4 MAR 2011
© 2011 The Author. African Development Review © 2011 African Development Bank
African Development Review
Volume 23, Issue 1, pages 75–87, March / Mars 2011
How to Cite
Biekpe, N. (2011), The Competitiveness of Commercial Banks in Ghana. African Development Review, 23: 75–87. doi: 10.1111/j.1467-8268.2010.00273.x
Nicholas Biekpe is at the UCT Graduate School of Business and Africagrowth Institute, Cape Town, South Africa; e-mail: firstname.lastname@example.org
- Issue online: 4 MAR 2011
- Version of Record online: 4 MAR 2011
Abstract: The paper empirically investigates the degree of bank competition and intermediation efficiency in Ghana. The evidence obtained suggests a non-competitive market structure in the Ghanaian banking system, which hampers financial intermediation. The study also finds that Ghanaian banks are monopolistically competitive. It is argued that the structure, as well as the other markets characteristics, constitutes an indirect barrier to entry thereby shielding the large profits in the Ghanaian banking system. Further, it is argued that policies that encourage and stimulate greater consolidation in the financial sector would go a long way to enhance competition among banks and improve efficiency and profitability.