International Journal of Banking, Risk and Insurance

K. V. Bhanu Murthy ¹, Ashis Taru Deb ²

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

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

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