COMPETITION IN BANKING SECTOR

There have been many researches in order to demonstrate the relationship between banking competition, financial stability and performance structure. Literature reviews of these researches were used in this dissertation. The Mauritian banking sector is a highly oligopolistic one, controlled by only some major banks. Panel data analysis is being used to analyze the effects the explanatory variables on the dependent variable net income. Net income is the best variable to analyze competitiveness as the performance of a bank is measured through the amount of income it has earned from its activities