INSTRUCTIONS

This assignment requires knowledge on the various measures in computing

industry concentrations we learnt during the course. The task involves retrieving

financial data on Banks in Ghana for the period 2010 to 2020 for all banks in Ghana

within the stated period. Answer the following questions based on the data.

1. Determine the total asset of each bank in each year and provide this information

in a Table, where column refers to years and rows refer to the bank specific total

asset for the year.

2. Calculate the five-firm concentration ratio in the banking industry in Ghana for

each year using total assets.

3. Based on the five-firm concentration ratios calculated in 2 above, determine the

level of competition among banks in Ghana.

4. Calculate the five-firm concentration ratio in the banking industry in Ghana for

each year using deposits.

5. Calculate the five-firm concentration ratio in the banking industry in Ghana for

each year using loan advances.

6. Is there a difference between the interpretation for the five-firm concentration

ratio calculated using total assets, deposits and loan advances?

7. Calculate the Herfindahl-Hirschman Index (HHI) for each year using total assets

and comment on the level of competition among banks in Ghana.

8. Calculate the Herfindahl-Hirschman Index (HHI) for each year using deposits

and comment on the level of competition among banks in Ghana.

9. Calculate the Herfindahl-Hirschman Index (HHI) for each year using loan

advances and comment on the level of competition among banks in Ghana.

10.Which of the years would the level of competition in the banking industry in

Ghana be welfare improving from the perspective of customers based on the

calculated five-firm concentration ratios in question (1) and why?

11.Are your conclusions for HHI consistent with the five-firm concentration in all

cases? Give two reasons to support your answer.