The market concentration and banking industry performance

Abstract

This study examines the structure-profit relationship in the Qatari banking industry. The study sample consists of all the local banks operating in the market (13 banks) listed in Qatar Stock Exchange (QSE) over the 2009-2014 period. The hypotheses related to the market power structure which includes the traditional Structure-Conduct-Performance Hypothesis (SCP), and the traditional Efficiency Hypothesis (EH). The empirical results generally support the (SCP) Hypothesis in Qatari banking industry. Thus, the main implication of these results for the policymakers, of Qatari banking sector, is to expand the ongoing deregulation efforts with the aim of reducing the industry concentration and enhancing the market competitiveness.