INSTRUCTIONS

This assignment requires knowledge on the various measures in computing industry concentrations we learnt during the course. The task involves retrieving financial data on Banks in Ghana for the period 2010 to 2017 for all banks in Ghana within the stated period. Answer the following questions based on the data.

QUESTIONS

2. Calculate the four-firm concentration ratio in the banking industry in Ghana for each year using total assets.

3. Based on the four-firm concentration ratios calculated in 2 above, determine the level of competition among banks in Ghana.

4. Calculate the four-firm concentration ratio in the banking industry in Ghana for each year using deposits.

5. Calculate the four-firm concentration ratio in the banking industry in Ghana for each year using loan advances.

6. Is there a difference between the interpretation for the four-firm concentration ratio calculated using total assets, deposits and loan advances.

7. Calculate the Herfindahl-Hirschman Index (HHI) for each year using total assets and comment on the level of competition among banks in Ghana.

8. Calculate the Herfindahl-Hirschman Index (HHI) for each year using deposits and comment on the level of competition among banks in Ghana.

9. Calculate the Herfindahl-Hirschman Index (HHI) for each year using loan advances and comment on the level of competition among banks in Ghana.

10. Which of the years would the level of competition in the banking industry in Ghana be welfare improving from the perspective of customers based on the calculated four-firm concentration ratios in question (1) and why?

11. Are your conclusions for HHI consistent with the four-firm concentration in all cases? Give two reasons to support your answer.