Competition and Market Contestability in Ghanaian banking industry: A Panzar-Rosse Approach

The present study evaluates the market structure of Ghana’s banking industry and estimates nature degree competition. This uses non-structural methodology proposed by Panzar-Rosse Model known as “H-statistic” to empirically assess competitiveness in Ghanaian market. 23 banks Ghana from 2000 2019, compiled reported Association Bankers (GAB). results show that derive their revenue conditions monopolistic Thus, Contestable markets theory Chamberlainian competition are validated results. Furthermore, revealed after various structural reforms including implementation FINSAP, sector increased. Finally, when dataset was decomposed into local foreign banks, indicate found for both banks. Managerially, presence a condition adds call managers consider factor input prices an attempt generate more revenues. Second, avoid negative consequences competition, these should not rely on single income source but also indulge non-intermediation activities. In terms policy, pro-structural shift policies have helped with transition monopoly free entry or contestable be rigorously pursued policymakers. Besides, policy directives enhance greater consolidation shouldbe rigorously. this could help policy-makers fashion appropriate optimal intervention stability geared towards enhancing at different levels bank