The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria
International Journal of Business and Economics Research
Volume 9, Issue 4, August 2020, Pages: 176-182
Received: Apr. 14, 2020; Accepted: May 3, 2020; Published: Jun. 17, 2020
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Bosede Olanike Awoyemi, Department of Economics, Afe Babalola University of Ado-Ekiti, Ado-Ekiti, Nigeria; Macroeconomics and Governance Division, United Nations Economic Commission for Africa (UNECA), Addis Ababa, Ethiopia
Josephine Onyinyechi Ihesiaba, Department of Economics, Afe Babalola University of Ado-Ekiti, Ado-Ekiti, Nigeria
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The level of competition in view of the financial performance of Deposit Money Banks (DMBs) between the periods of 2009 to 2018 was investigated. To measure competition, a four-firm Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI) were used. To denote the percentage of market share that the individual bank has relative to the market size, the HHI and CR4 were computed from the individual bank’s return on assets relative to the total assets of all the Deposit Money Banks in Nigeria. Simple arithmetic from excel workbook was done to estimate the competition indices (HHI and CR4). Data were obtained from the annual financial statement of the selected 15 deposit money banks in Nigeria. Descriptive statistics were used to show the trends of the top four (4) Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI). It was also used to identify the characteristics of the Herfindal Hirschman Index (HHI) and Concentration Ratio CR of the Deposit Money Banks (DMBs). The descriptive statistics provide the summary statistics such as average value (mean), minimum and maximum values, median and standard deviation. The results indicated a high level of competition among the deposit money banks, and the banking industry was found to be highly competitive between the period of year 2009 and 2018.
Competition, Herfindal-Hirschman Index (HHI), Market, Concentration Ratio (CR), Nigeria, Return on Asset (ROA), Banking Industry, Performance, Banks, Market Share
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Bosede Olanike Awoyemi, Josephine Onyinyechi Ihesiaba, The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria, International Journal of Business and Economics Research. Vol. 9, No. 4, 2020, pp. 176-182. doi: 10.11648/j.ijber.20200904.13
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