Competition in Hong Kong’s Banking Sector: A Panzar–Rosse Assessment

  • Jim Wong
  • Eric Tak-Chuen Wong
  • Tom Pak-Wing Fong
  • Ka-Fai Choi
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


The operating environment of the banking sector in Hong Kong has undergone major changes in recent years, including regulatory liberalization, technological progress and industry consolidation.1 These structural developments could have implications for competitive conditions in the sector. Competition could lower financial intermediation costs and contribute to improvements in economic efficiency. However, since it may also reduce the market power and profitability of banks, it could weaken their ability to withstand adverse developments. It is important for policy makers to know the extent of competition in the sector and how it has evolved over time.


Banking Sector Input Price Large Bank Small Bank Competitive Condition 
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Copyright information

© Jim Wong, Eric Tak-Chuen Wong, Tom Pak-Wing Fong and Ka-Fai Choi 2008

Authors and Affiliations

  • Jim Wong
  • Eric Tak-Chuen Wong
  • Tom Pak-Wing Fong
  • Ka-Fai Choi

There are no affiliations available

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