Question
[i] Critically evaluate structural indicators of competition in banking. [ii] Critically evaluate non-structural indicators of competition in banking. [iii] Specify a framework to test the
[i] Critically evaluate structural indicators of competition in banking.
[ii] Critically evaluate non-structural indicators of competition in banking.
[iii] Specify a framework to test the structure-conduct-performance paradigm, relative market power hypothesis, and efficiency versions of the efficient structure hypothesis. In the accompanying narrative, describe key variables and the expected signs on coefficients and relationships between variables.
[iv] Based on a theoretical framework and with reference to empirical evidence, discuss if too much competition is good or bad for bank stability
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