Competition in the GCC SME Lending Markets : An Initial Assessment
The countries of the Gulf Cooperation Council (GCC) have articulated a vision for sustainable economic development that highlights the need to diversify the productive base to reduce dependence on the hydrocarbon sector and create more employment o...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/219781478855303337/Competition-in-the-GCC-SME-lending-markets-an-initial-assessment http://hdl.handle.net/10986/25404 |
| Summary: | The countries of the Gulf Cooperation
Council (GCC) have articulated a vision for sustainable
economic development that highlights the need to diversify
the productive base to reduce dependence on the hydrocarbon
sector and create more employment opportunities for their
young and growing population. This report analyzes how some
key rules and regulations as well as institutional
arrangements for the enforcement of competition law in the
GCC may affect competition in the Small and medium
enterprise (SME) lending markets. The findings of this
report have several policy implications. This report
identifies a number of areas where relevant regulations and
institutional frameworks may impede competition in GCC SME
lending markets, and require further investigation. Specific
topics explored in this study include (i) restrictions to
competition resulting from banking sector rules and
regulations; (ii) the exercise of discretion by relevant
institutions; and (iii) the role of institutional
arrangements for the enforcement of competition law
prohibitions and merger control. This assessment of the
competition in the GCC’s SME lending markets proceeds as
follows: Chapter 2 presents the SME banking markets in the
GCC by discussing the number and ownership patterns of
banks, and evaluating measures of concentration and market
power. Chapter 3 presents the results of an initial
screening of selected areas of regulatory intervention that
affect SME lending markets. Chapter 4 evaluates the
effectiveness of competition laws in the GCC countries.
Chapter 5 concludes by highlighting areas where further
analytical work may be warranted. |
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