Martínez Pería, María SoledadDemirguc-Kunt, Asli2012-03-192012-03-192010-12-01https://hdl.handle.net/10986/3982This paper proposes a framework to analyze competition in the banking sector using Jordan as an example. In particular, the paper pursues a multi-pronged approach to analyze competition including (i) an examination of the extent to which the market is contestable (that is, has low barriers to bank entry and exit), (b) an evaluation of the behavior of bank spreads, and (iii) an assessment of non-structural and direct measures of bank competition such as the H-statistic and the Lerner Index. This approach provides a more comprehensive framework to examine competition in the banking sector, compared with the commonly used alternative of looking only at bank concentration figures. In the case of Jordan, the analysis indicates that although concentration has declined, competition in the country is low and has decreased over time.CC BY 3.0 IGOAFFILIATESASSET RATIOAUDITINGAUDITORSAUDITSBALANCE SHEETBANK ACTIVITIESBANK ASSETSBANK BORROWERSBANK COMPETITIONBANK ENTRYBANK INTEREST MARGINSBANK LOANSBANK OPERATIONSBANK POLICYBANK SPREADSBANKING INDUSTRYBANKING MARKETBANKING REGULATIONSBANKING SECTORBANKING SECTORSBANKING SYSTEMBANKSBARRIERS TO ENTRYBONDBONDSCAPITAL ADEQUACYCAPITAL ASSETCAPITAL REQUIREMENTSCAPITALIZATIONCENTRAL BANKCOMMERCIAL BANKCOMMERCIAL BANKINGCONSOLIDATIONCONTESTABILITYCURRENCYDEPOSITDEPOSIT RATESDEPOSITSDEREGULATIONDERIVATIVEDEVELOPING COUNTRIESDEVELOPING ECONOMIESDISCLOSURE OF INFORMATIONDISCLOSURE REQUIREMENTSDOMESTIC BANKDOMESTIC BANKSEMERGING MARKETEMERGING MARKET COUNTRIESEXIT FRAMEWORKEXTERNAL AUDITORSFAILURE RESOLUTIONFINANCIAL COSTSFINANCIAL DEVELOPMENTFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL SERVICESFINANCIAL STABILITYFOREIGN BANKFOREIGN BANK PARTICIPATIONFOREIGN BANKSFOREIGN PENETRATIONFRAUDGLOBAL FINANCIAL SYSTEMGOVERNMENT BANKGOVERNMENT BANKSHOLDINGHOLDING COMPANIESINCUMBENT BANKSINFLATIONINFLATION RATEINPUT PRICEINPUT PRICESINSTITUTIONAL DEVELOPMENTINSURANCEINSURANCE ACTIVITIESINSURANCESINTEREST EXPENSESINTEREST INCOMEINTEREST RATEINTEREST RATE SPREADSINTEREST RATESINTERNATIONAL AUDITING STANDARDSINTERNATIONAL BANKISSUANCEJOINT VENTUREJUDICIAL ENVIRONMENTLACK OF COMPETITIONLAWSLENDING INSTRUMENTSLEVYLIBERALIZATIONLIQUIDATIONLIQUIDITYLOANMACROECONOMIC CONDITIONSMARGINAL COSTSMARKET POWERMARKET STRUCTUREMONEY MARKETMONOPOLYMORTGAGEMORTGAGE LOANSMUTUAL FUNDMUTUAL FUND INDUSTRYOUTPUTOUTPUTSOVERDRAFTOVERDRAFT FACILITIESOVERDRAFTSPERSONNEL EXPENSESPRIME RATEPRIVATE SECTOR DEVELOPMENTPROFITABILITYPROPERTY RIGHTSREAL ESTATEREAL ESTATE INVESTMENTREGULATORSREGULATORY FRAMEWORKRETAILRETURN ON ASSETSSECURITIESSHARE OF ASSETSSHAREHOLDERSSOURCE OF FUNDSSOURCES OF FUNDSSPREADSUBSIDIARIESSUBSIDIARYSUPERVISION OF BANKSSUPERVISORY AGENCYTAXTAX RETURNTAXATIONTIME DEPOSITSTRACK RECORDTRANSPARENCYUNIONWORLD DEVELOPMENT INDICATORSWorld Bank10.1596/1813-9450-5499