Market concentration and bank competition pre-post GFC across emerging Asian countries

![CDATA[Purpose - This paper aims to investigate both market concentration and bank competition of banking across seven emerging Asian countries (e.g. Bangladesh, Indonesia, India, Philippines, Malaysia, Thailand and Vietnam) over pre and post the 2008 global financial crisis. Methodology/approach – The conduct parameter approach following the framework suggested by Uchida and Tsutsui (2005) is used to estimate bank competition in seven emerging Asian countries. For robustness checks of the results, the paper uses two models and employs both seemingly unrelated regression (SUR) and three-stage least squares (3SLS) to estimate simultaneously the system of equations in our models. For measuring the degree of market concentration, this paper uses four-bank concentration ratio (CR4) in terms of total assets. Finally, line of best fit (i.e. least square method) is used to examine the relationship between competition and market concentration in banking of these countries. Findings - Levels of market concentration are high and change dramatically over pre and post the global financial crisis. The banking industry in these countries operated in different competitive structures such as monopolistic competition, competitive structure with higher marginal cost than price, and their mixture. The result supposes a negative relationship between market concentration and bank competition. Originality/value – The paper fills the gap in the banking literature by investigating bank competition, market concentration and their relationship across emerging Asian economies over the 2008 global financial crisis. Moreover, several policy implications for banking industry are suggested.]]