Measurement of Competition
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In this chapter, we have estimated the degree of competition in the Indian banking sector for the period 1992–2012, as well as in the two sub-periods 1992–2001 and 2002–2012. From our study, we have found that, like the majority of the banking sectors in the developed countries, Indian banking sector also operated under monopolistic competition. Further, the level of competition increased in phase II vis-a-vis phase I for the banking system as a whole as well as for all categories of banks. Liberalization push, wide usage of technology and introduction of new age private sector banks have enhanced competition in the banking space. This chapter draws from the authors’ previous work Sengupta and De (2018). Content has been re-used with permission.
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