Bank’s Competition


  • Chawin Leenabanchong Faculty of Economics, Thammasat University, Thailand


banking, competition, Panzar Rose model, market structure


Bank’s competition is one argument among others behind the financial instability especially in the economy which bank is the main financial intermediation. In order to meet this stability goal, regulator tends to use this argument to allow for concentrated and monopolizing rather than competed structure in banking industry. Therefore, to measure the competition in financial industry is the crucial supervision policy issue. The main objective here is to study the status of bank’s competition after the recently establishment of the new financial master plan in Thailand, which tried to separate commercial banks into various types of banks. Since the relationship between competition, efficiency and stability in financial system are not easy to consider separately, this study has used the non-structural approach to measure the competition status. The results showed that, in period of study, bank’s competition did not show up as high as the structural approach often indicate.  


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How to Cite

Leenabanchong, C. (2012). Bank’s Competition. Thailand and The World Economy, 30(3), 102–131. Retrieved from