Panzar and Rosse H-통계 모형으로 살펴본 GCC 은행산업 경쟁 현황 분석

A Review on the Market Competition in the GCC Banking Industry applying the Panzar and Rosse H-statistics Model

This paper examines the level of market competition in the emerging GCC banking industry that is leading the world economy. Inaddition, it explores the growth and competitiveness of the islamic and commercial banks in the GCC. In doing so, this paper, in practice, employs the PR H-statistics model as well as 11 peer group analysis in identifying the level of market concentration in the GCC banking industry. The main finding of this research is that both the islamic banking industry and the commercial banking industry are competitive.This result corresponds to the Gini index of net income, total asset, operating income to turnover, and market capitalization, which are measured by the Lorenz curve tool. As such, the author strongly recommends Korean domestic banks to take the simultaneous strategy in employing ‘exploitation’ and ‘exploration’ approaches. The former concerns the resource commitment aiming at the increase in banks’ profitability in foreign markets. The latter emphasizes the significance of seeking the potential growth engine for the future beyond the current survival in markets.