Title: Determinants of banking competition in Morocco and evaluation of the structural reforms

Authors: Afifa Hakam; Filali Adib Fatine; Firano Zakaria

Addresses: University Mohammed V Agdal, Morocco ' University Mohammed V Agdal, Morocco ' University Mohammed V Agdal, Morocco

Abstract: The empirical results of this paper indicate that the degree of competition in the banking system is determined by several macroeconomic aggregates that describe the relevance of the policies implemented in financial Morocco. Thus, the result says that there is a positive relationship between the index of competition and concentration there by verifies our theoretical perception. On another note, economic growth is negatively correlated with the competition, which unfortunately indicates that when there are sustained economic growth banks do not behave concurrently and try to retain their market share stimulated by a high concentration sector. This is also dependent on conditions in the credit market, which indicates that when the demand is constant, banks tend to have fewer competing behaviours. In addition, the development of positive market impact of competition which is consistent with liberal theory. Thus, the use of financial market intensifies competition between banks to produce services being able to attract more customers to compensate for those who chose the stock market. Finally, in the implementation of monetary policy, the indicator of interbank interest rate has a positive impact on competition.

Keywords: bank competition; bank concentration; financial stability; public policy; economic growth; banking industry; Morocco; structural reforms; monetary policy; credit markets; financial markets; stock markets.

DOI: 10.1504/IJEPEE.2014.065249

International Journal of Economic Policy in Emerging Economies, 2014 Vol.7 No.3, pp.217 - 244

Published online: 30 Oct 2014 *

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