The study determined the degree of
competition in the banking sector between 1990 and 2009 using Panzar and Rosse
(PR) methodology. The data for the study were obtained from the annual reports
and statement of accounts of fifteen commercial banks in Nigeria which were
purposively selected for the study. The data collected were analysed using
dynamic panel generalised method of moment estimation technique with fixed
effect. The results of the analysis showed that the Nigerian commercial banks
were characterised by monopolistic competition with H-statistic significantly
different from zero for all sample periods and sub-sample periods. The value of
H-statistic ranged between 0.0925 and 0.1168. The study concluded that the
banking industry in Nigeria exhibited monopolistic competition which supports
the results obtained from previous studies in the developed economies.
Cite this paper
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