A Literature Review on the Competition in the Banking Sector
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2018, Vol 8, Issue 1
Abstract
Two of the key components in the fight against poverty are availability of financial services and competition. While competition improves markets, enables growth and productivity and also promotes innovation, access to financial services enables the poor people to save, and access other facilities such as insurance and credit giving them a chance too to contribute towards economic growth and even their consumption. Furthermore, with competition, finance becomes cheaper, further increasing accessibility of financial services. Therefore, this proposes a co-relationship between finance and competition in the area of banking. This sector’s research is still in its early stages and there is little co-relation on the same whether a strong one or not. There is no harmony on the cause or on whether competition in the sector of finance is positive or negative for markets. This paper explores the literature connected to this relationship. It proposes that concentration (as a competition gauge amid others) does not necessarily mean that there lack completion in the banking industry and that the banking industry involves that many if not most of the banking sectors indicates a monopolistic competition. Due to the threat of entry into this industry, banks behave in a competitive way and the size of the institution enhances performance rather than impede the competition. However sketchy evidence shows that there exists collusion. The two, worldwide and within South Africa, commissions that deal with competition have efficaciously indicted cartels in the banking industry. This paper concludes that, by raising queries about the approaches and methods used to study competition in the banking industry and whether these methods cover sufficiently vital features of competition in the industry.
Authors and Affiliations
Khaldoun M. Al-Qaisi
Keywords
Related Articles
- EP ID EP287601
- DOI 10.6007/IJARAFMS/v8-i1/4043
- Views 81
- Downloads 0
A Survey of the Role of Earnings Quality in Accurately Forecasting of Operational and Cash Circulation of Companies Listed on Tehran Stock Exchange
Accuracy of financial prediction is one of the important goals of financial reporting as important information is provided for internal and external users. Accounting profit and its components are the information conside...
Intrinsic and Extrinsic Motivation as Attitude Factors towards Adoption of Accounting Information System (AIS) In Libyan SMEs
Though the relationship between users’s IT characteristics and behavioral intention of users to adoption information system continues to be important, conclusive evidence on user’s attitude contributing to enhance behavi...
Threats and Challenges to Accounting Profession: A Draw Back to the Development of Accounting Practices in Nigeria
This study examines the practice of accounting profession in other to identify those threats and challenges serving as obstacle to its development in Nigeria. To achieve this, three hypotheses were tested. A simple chi s...
Need for a Paradigm to Return to Nature and Common Sense
The Relative Efficiency of Saudi Banks: Data Envelopment Analysis Models
The purpose of this study is to measure the relative efficiency of banks in Saudi Arabia using a basic DEA models like CCR and BCR. Also, it investigated the determinants of such efficiency in terms of bank size and capi...