Market Structure, Entrance Conditions and Optimal Number of Banks in the Bolivian Financial System: A Concentration and Industrial Mobility Indicators Approach

Abstract

This paper calculates indicators of market structure: concentration ratio, Herfindahl index, Herfindahl-Hirschman index, inverse of the Herfindahl index and the stability indicator. These indicators are used: (1) to measure indirectly the competitiveness of the bank market, (2) to define conditions of entrance of new banks to the market, and (3) to establish a criterion to estimate the optimal number of banks in the market.indicadores de concentración; estructura de mercado; número óptimo de bancos