Competitive Conditions in the Ghanaian Banking Sector

Abstract

This study measures competitive conditions in the Ghanaian banking sector, from 2008 to 2012, using data relating to the total and the core output of 10 banks in Ghana. The Rosse Penzar H-statistics was derived and it indicated that the sector exhibited characteristics of a conjectural variation short run oligopoly. The mergers and acquisitions that occurred during the study period did not have any significant effect on competitive conditions in the sector as 45 per cent of assets in the sector are skewed towards the top five banks at the time.

Keywords: Ghanaian banking sector, Rosse Penzar H-statistics, conjectural variation short run oligopoly