Concentration and competition among NBFC-MFI'S in India

 
 
 
  • Abstract
  • Keywords
  • References
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  • Abstract


    Non-banking financial companies have a prominent role in the development of Indian economy. A stable non-banking system is essential for growth and development of any economy. In India, the NBFC's started proliferating during the year 1956. Primary aspects that influence the Non-Banking Industry’s progress are the competition that arises between them. This research aims at investigating the competition level of NBFC-MFI's (Micro Financial Institutions) in India by using an assessment methodology which focuses on analyzing the overall com-petitiveness of the NBFC-MFI's in India in accordance to the standards of market concentration ratio. Here the competition level of NBFC-MFI's in India is analyzed using Herfindahl-Hirschman Index. We also estimate the Concentration Ratio for the industry. The analysis is done for the NBFC-MFI's registered with RBI as on 2018 for the period from 2000-2017. The research results highlighted that the Non-Banking Financial Companies in India was characterized, during the year 2017, by an oligopoly competition with the dominant company with competitive edges or monopoly.

     

     

     

  • Keywords


    Competitiveness; Competitive Advantage; Herfindahl-Hirschman Index (HHI); Market Concentration Ratio; Non-Banking Financial Companies; Micro Financial Institutions; Indian Banking Sector

  • References


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Article ID: 15546
 
DOI: 10.14419/ijet.v7i2.33.15546




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