The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria

Bosede Olanike Awoyemi; Josephine Onyinyechi Ihesiaba

doi:doi:10.11648/j.ijber.20200904.13

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The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria

Bosede Olanike Awoyemi, Josephine Onyinyechi Ihesiaba

Published in International Journal of Business and Economics Research (Volume 9, Issue 4)

Received: 14 April 2020 Accepted: 3 May 2020 Published: 17 June 2020

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Abstract

The level of competition in view of the financial performance of Deposit Money Banks (DMBs) between the periods of 2009 to 2018 was investigated. To measure competition, a four-firm Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI) were used. To denote the percentage of market share that the individual bank has relative to the market size, the HHI and CR4 were computed from the individual bank’s return on assets relative to the total assets of all the Deposit Money Banks in Nigeria. Simple arithmetic from excel workbook was done to estimate the competition indices (HHI and CR4). Data were obtained from the annual financial statement of the selected 15 deposit money banks in Nigeria. Descriptive statistics were used to show the trends of the top four (4) Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI). It was also used to identify the characteristics of the Herfindal Hirschman Index (HHI) and Concentration Ratio CR of the Deposit Money Banks (DMBs). The descriptive statistics provide the summary statistics such as average value (mean), minimum and maximum values, median and standard deviation. The results indicated a high level of competition among the deposit money banks, and the banking industry was found to be highly competitive between the period of year 2009 and 2018.

Published in	International Journal of Business and Economics Research (Volume 9, Issue 4)
DOI	10.11648/j.ijber.20200904.13
Page(s)	176-182
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Competition, Herfindal-Hirschman Index (HHI), Market, Concentration Ratio (CR), Nigeria, Return on Asset (ROA), Banking Industry, Performance, Banks, Market Share

References

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APA Style

Bosede Olanike Awoyemi, Josephine Onyinyechi Ihesiaba. (2020). The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria. International Journal of Business and Economics Research, 9(4), 176-182. https://doi.org/10.11648/j.ijber.20200904.13

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ACS Style

Bosede Olanike Awoyemi; Josephine Onyinyechi Ihesiaba. The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria. Int. J. Bus. Econ. Res. 2020, 9(4), 176-182. doi: 10.11648/j.ijber.20200904.13

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AMA Style

Bosede Olanike Awoyemi, Josephine Onyinyechi Ihesiaba. The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria. Int J Bus Econ Res. 2020;9(4):176-182. doi: 10.11648/j.ijber.20200904.13

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@article{10.11648/j.ijber.20200904.13,
  author = {Bosede Olanike Awoyemi and Josephine Onyinyechi Ihesiaba},
  title = {The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {4},
  pages = {176-182},
  doi = {10.11648/j.ijber.20200904.13},
  url = {https://doi.org/10.11648/j.ijber.20200904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200904.13},
  abstract = {The level of competition in view of the financial performance of Deposit Money Banks (DMBs) between the periods of 2009 to 2018 was investigated. To measure competition, a four-firm Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI) were used. To denote the percentage of market share that the individual bank has relative to the market size, the HHI and CR4 were computed from the individual bank’s return on assets relative to the total assets of all the Deposit Money Banks in Nigeria. Simple arithmetic from excel workbook was done to estimate the competition indices (HHI and CR4). Data were obtained from the annual financial statement of the selected 15 deposit money banks in Nigeria. Descriptive statistics were used to show the trends of the top four (4) Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI). It was also used to identify the characteristics of the Herfindal Hirschman Index (HHI) and Concentration Ratio CR of the Deposit Money Banks (DMBs). The descriptive statistics provide the summary statistics such as average value (mean), minimum and maximum values, median and standard deviation. The results indicated a high level of competition among the deposit money banks, and the banking industry was found to be highly competitive between the period of year 2009 and 2018.},
 year = {2020}
}

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TY  - JOUR
T1  - The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria
AU  - Bosede Olanike Awoyemi
AU  - Josephine Onyinyechi Ihesiaba
Y1  - 2020/06/17
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200904.13
DO  - 10.11648/j.ijber.20200904.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 176
EP  - 182
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20200904.13
AB  - The level of competition in view of the financial performance of Deposit Money Banks (DMBs) between the periods of 2009 to 2018 was investigated. To measure competition, a four-firm Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI) were used. To denote the percentage of market share that the individual bank has relative to the market size, the HHI and CR4 were computed from the individual bank’s return on assets relative to the total assets of all the Deposit Money Banks in Nigeria. Simple arithmetic from excel workbook was done to estimate the competition indices (HHI and CR4). Data were obtained from the annual financial statement of the selected 15 deposit money banks in Nigeria. Descriptive statistics were used to show the trends of the top four (4) Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI). It was also used to identify the characteristics of the Herfindal Hirschman Index (HHI) and Concentration Ratio CR of the Deposit Money Banks (DMBs). The descriptive statistics provide the summary statistics such as average value (mean), minimum and maximum values, median and standard deviation. The results indicated a high level of competition among the deposit money banks, and the banking industry was found to be highly competitive between the period of year 2009 and 2018.
VL  - 9
IS  - 4
ER  -

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Author Information

Bosede Olanike Awoyemi

Department of Economics, Afe Babalola University of Ado-Ekiti, Ado-Ekiti, Nigeria
Josephine Onyinyechi Ihesiaba

Department of Economics, Afe Babalola University of Ado-Ekiti, Ado-Ekiti, Nigeria

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Plain Text BibTeX RIS

APA Style

Bosede Olanike Awoyemi, Josephine Onyinyechi Ihesiaba. (2020). The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria. International Journal of Business and Economics Research, 9(4), 176-182. https://doi.org/10.11648/j.ijber.20200904.13

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ACS Style

Bosede Olanike Awoyemi; Josephine Onyinyechi Ihesiaba. The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria. Int. J. Bus. Econ. Res. 2020, 9(4), 176-182. doi: 10.11648/j.ijber.20200904.13

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AMA Style

Bosede Olanike Awoyemi, Josephine Onyinyechi Ihesiaba. The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria. Int J Bus Econ Res. 2020;9(4):176-182. doi: 10.11648/j.ijber.20200904.13

Copy | Download

@article{10.11648/j.ijber.20200904.13,
  author = {Bosede Olanike Awoyemi and Josephine Onyinyechi Ihesiaba},
  title = {The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {4},
  pages = {176-182},
  doi = {10.11648/j.ijber.20200904.13},
  url = {https://doi.org/10.11648/j.ijber.20200904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200904.13},
  abstract = {The level of competition in view of the financial performance of Deposit Money Banks (DMBs) between the periods of 2009 to 2018 was investigated. To measure competition, a four-firm Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI) were used. To denote the percentage of market share that the individual bank has relative to the market size, the HHI and CR4 were computed from the individual bank’s return on assets relative to the total assets of all the Deposit Money Banks in Nigeria. Simple arithmetic from excel workbook was done to estimate the competition indices (HHI and CR4). Data were obtained from the annual financial statement of the selected 15 deposit money banks in Nigeria. Descriptive statistics were used to show the trends of the top four (4) Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI). It was also used to identify the characteristics of the Herfindal Hirschman Index (HHI) and Concentration Ratio CR of the Deposit Money Banks (DMBs). The descriptive statistics provide the summary statistics such as average value (mean), minimum and maximum values, median and standard deviation. The results indicated a high level of competition among the deposit money banks, and the banking industry was found to be highly competitive between the period of year 2009 and 2018.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Level of Competition Among the Deposit Money Banks (DMBs) in Nigeria
AU  - Bosede Olanike Awoyemi
AU  - Josephine Onyinyechi Ihesiaba
Y1  - 2020/06/17
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200904.13
DO  - 10.11648/j.ijber.20200904.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 176
EP  - 182
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20200904.13
AB  - The level of competition in view of the financial performance of Deposit Money Banks (DMBs) between the periods of 2009 to 2018 was investigated. To measure competition, a four-firm Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI) were used. To denote the percentage of market share that the individual bank has relative to the market size, the HHI and CR4 were computed from the individual bank’s return on assets relative to the total assets of all the Deposit Money Banks in Nigeria. Simple arithmetic from excel workbook was done to estimate the competition indices (HHI and CR4). Data were obtained from the annual financial statement of the selected 15 deposit money banks in Nigeria. Descriptive statistics were used to show the trends of the top four (4) Concentration ratio (CR4) and Herfindal-Hirschman Index (HHI). It was also used to identify the characteristics of the Herfindal Hirschman Index (HHI) and Concentration Ratio CR of the Deposit Money Banks (DMBs). The descriptive statistics provide the summary statistics such as average value (mean), minimum and maximum values, median and standard deviation. The results indicated a high level of competition among the deposit money banks, and the banking industry was found to be highly competitive between the period of year 2009 and 2018.
VL  - 9
IS  - 4
ER  -

Copy | Download