Total deposits from 2018-2020=$19045008 5 firm concentration ratio= (total volume share of five largest share firms/total volume in the market)*100 5 firm concentration ratio= ($18800388)/($19045008)*100=98.72%. Therefore it shows high concentrations. Total deposits from 2018-2020=$56637414 5 firm concentration ratio= (total volume share of five largest share firms/total volume in the market)*100 5 firm concentration ratio= ($56637414)/($56637414)*100=100%. Therefore it shows full or high concentrations. 2018 Total industry assets = STANBIC + BARCLAYS = 6,205,018 + 8,994,562 = 15,199,580 Concentration of STANBIC = 6,205,018 / 15,199,580 = 0.408236 = 0.41 = 41% Concentration of BARCLAYS = 8,994,562 / 15,199,580 = 0.591764 = 0.59 = 59% 2019 Total industry assets = STANBIC + ASBA = 9,295,682 + 11,772,546 = 21,068,228 Concentration of STANBIC = 9,295,682 / 21,068,228 = 0.441218 = 0.44 = 44% Concentration of ASBA = 11,772,546 / 21,068,228 = 0.558782 = 0.56 = 56% 2020 Total industry assets = STANBIC + ASBA =12,742,132 + 12,546,473 = 25,288,605 Concentration of STANBIC = 12,742,132 / 25,288,605 = 0.503869 = 0.50 = 50% Concentration of ASBA = 12,546,473 / 25,288,605 =0.496131= 0.50 = 50% Whichof the years would the level of competition be welfare improving from the perspective of customers based on the calculated five-firm concentration and why?
Total deposits from 2018-2020=$19045008
5 firm concentration ratio= (total volume share of five largest share firms/total volume in the market)*100
5 firm concentration ratio= ($18800388)/($19045008)*100=98.72%.
Therefore it shows high concentrations.
Total deposits from 2018-2020=$56637414
5 firm concentration ratio= (total volume share of five largest share firms/total volume in the market)*100
5 firm concentration ratio= ($56637414)/($56637414)*100=100%.
Therefore it shows full or high concentrations.
2018
Total industry assets = STANBIC + BARCLAYS = 6,205,018 + 8,994,562 = 15,199,580
Concentration of STANBIC = 6,205,018 / 15,199,580 = 0.408236 = 0.41 = 41%
Concentration of BARCLAYS = 8,994,562 / 15,199,580 = 0.591764 = 0.59 = 59%
2019
Total industry assets = STANBIC + ASBA = 9,295,682 + 11,772,546 = 21,068,228
Concentration of STANBIC = 9,295,682 / 21,068,228 = 0.441218 = 0.44 = 44%
Concentration of ASBA = 11,772,546 / 21,068,228 = 0.558782 = 0.56 = 56%
2020
Total industry assets = STANBIC + ASBA =12,742,132 + 12,546,473 = 25,288,605
Concentration of STANBIC = 12,742,132 / 25,288,605 = 0.503869 = 0.50 = 50%
Concentration of ASBA = 12,546,473 / 25,288,605 =0.496131= 0.50 = 50%
Whichof the years would the level of competition be welfare improving from the perspective of customers based on the calculated five-firm concentration and why?
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