Analysis of competitiveness in Qatar banking industry

What is it about?

This study evaluates the monopoly power of Qatar banking industry during the period 1993 to 2002. The sample consists of panel of 60 observations using the ‘H-statistic’ by Panzar and Rosse and investigates the market structure using the most frequently applied measures of concentration k-bank concentration ratio and Herfindahl–Hirschman index. Both of the concentration indices indicate that the Qatar had a ‘very concentrated market’. The Panzar and Rosse ‘H-statistic’ suggests that Qatar banks operate under monopolistic competition. Qatar Central Bank should be very cautious in granting mergers among banks, in particular among large ‘core’ banks.

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