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This is the first study to simultaneously estimate the influence of market power and efficiency on profitability of banks in a Pacific Island context. Two market power hypotheses — the Structure-Conduct-Performance (SCP) and the Relative-Market-Power (RMP) hypotheses together with two measures...
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Banks in the small island developing states of the Pacific have not only survived the Global Financial Crisis but remain strong and profitable raising the question: what determines the strong profitability of banks in the PICs? Moreover, despite the large and extended literature on the subject,...
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