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1.1.

Research Questions
1) How can competition be good or bad for banking sector?
2) What can be recommended to the banking sector for the improvement of the
performance?

In this research Return on Assets (ROA) ratio which reflects the performance of the
banks is used to measure the performance of the commercial bank and two other structural
competition measures are used for evaluating the existing competition in banking sector.
Considering the issues related to the competition and performance of the banking sector, this
research is focused on the measuring the competition and its impact on the banks performance.
From this research it is concluded that bank competition have negative impact on bank
performance which is denoted by ROA. Moreover it concludes that market share of major
banks is decreasing.

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