Market structure, conduct and performance: Evidence from the Bangladesh banking industry

With regard to the market structure and performance in Bangladesh banking industry, there are two competing hypotheses-the traditional structure-conduct-performance (SCP) hypothesis and the efficiency hypothesis (EH). Using pooled and annual data for the period 1999-2002, this study tests the validity of these two hypotheses. In general, the results of this study support the EH hypothesis as an explanation for market performances in Bangladesh, but for definitive policy purposes, the impact of the banking structure needs to be explored further.