Structure-Performance Relation in Nepalese Banking Industry

Abstract

This paper aims at testing the structure-performance hypotheses in the context of Nepalese banking industry for the period of 2001-2009 under the Berger and Hannan (1993) empirical framework. The empirical results suggest that traditional structure-conduct-performance hypothesis and quit life hypothesis are at work in explaining concentration-profitability relation and there are weak supports for efficiency structure hypotheses. The results of this study hold significant policy and managerial implications.