TY  - JOUR
TT  - Domestic or Foreign Banks? Who Wields more Market Power?
AU  - Abel, Sanderson
AU  - Khobai, Hlalefang
AU  - Roux, Pierre Le
PY  - 2017
DA  - June
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 175
EP  - 181
VL  - 7
IS  - 2
KW  - Market Power
KW  - Lerner Index
KW  - Marginal Cost
N2  - The study distinguishes the market power between domestic and foreign banks in Zimbabwe using the Lerner Index. The study established that the banking sector is operating under monopolistic competition conditions. The result shows banks price their products above the marginal cost of production. Domestic banks have more market power as compared to foreign firms. The foreign banks serves the high end consumers whose risky profile is low while the other end of the market is served by the domestic banks who are very risky. This then translates to higher prices for the clients served by the domestic banks. Bank regulators should promote competition to improve the efficiency of domestic banks to reduce their market power.
UR  - https://dergipark.org.tr/en/pub/ijefi/issue//354461
L1  - https://dergipark.org.tr/en/download/article-file/365633
ER  -