Does the Increase in Banking Concentration Impact Income Inequality in South Africa?

  • Eliphas Ndou
  • Thabo Mokoena


Evidence reveals that income inequality rises significantly to a positive bank concentration shock. The counterfactual analysis reveals that the increase in income inequality to positive bank concentration shocks is amplified by the decline in both credit and GDP, as well as rising unemployment. Therefore, bank concentration should be reduced to lower income inequality via the indicated channels.


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© The Author(s) 2019

Authors and Affiliations

  • Eliphas Ndou
    • 1
    • 3
    • 4
  • Thabo Mokoena
    • 2
  1. 1.Economic Research DepartmentSouth African Reserve BankPretoriaSouth Africa
  2. 2.Department of Economic, Small Business Development, Tourism and Environmental AffairsFree State Provincial GovernmentBloemfonteinSouth Africa
  3. 3.School of Economic and Business SciencesUniversity of the WitwatersrandJohannesburgSouth Africa
  4. 4.Wits Plus, Centre for Part-Time StudiesUniversity of the WitwatersrandJohannesburgSouth Africa

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