International Journal of Banking, Risk and Insurance

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Theoretical Framework of Competition as Applied to Banking


Affiliations
1 Department of Commerce, Delhi School of Economics, University of Delhi, New Delhi, India
2 College of Vocational Studies, Delhi University, New Delhi, India
     

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This paper lays out a fundamental approach that revises our understanding of the theoretical framework of competition. First, it critically examines classical and neo-classical approaches to competition. Second, through eight elements the new approach lays out our new understanding of the framework of competition as applied to banking. Role of basic conditions in S-C-P, dynamic S-C-P, modified S-C-P as adapted to banking, entry, concentration and competition, goals and strategic groups in banking, importance of banking theory, dynamics of banking markets; and the new concept of entry facilitator; these are all the eight new dimensions that adapt competition theory to banks.

Keywords

Competition, Structure-Conduct-Performance (S-C-P), Entry Facilitator, Basic Conditions, Strategic Groups
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  • Theoretical Framework of Competition as Applied to Banking

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Authors

K. V. Bhanu Murthy
Department of Commerce, Delhi School of Economics, University of Delhi, New Delhi, India
Ashis Taru Deb
College of Vocational Studies, Delhi University, New Delhi, India

Abstract


This paper lays out a fundamental approach that revises our understanding of the theoretical framework of competition. First, it critically examines classical and neo-classical approaches to competition. Second, through eight elements the new approach lays out our new understanding of the framework of competition as applied to banking. Role of basic conditions in S-C-P, dynamic S-C-P, modified S-C-P as adapted to banking, entry, concentration and competition, goals and strategic groups in banking, importance of banking theory, dynamics of banking markets; and the new concept of entry facilitator; these are all the eight new dimensions that adapt competition theory to banks.

Keywords


Competition, Structure-Conduct-Performance (S-C-P), Entry Facilitator, Basic Conditions, Strategic Groups

References