Analysis of US Banking Sector: Markets, Competition, and SCP Framework

This report provides a comprehensive analysis of the US banking sector, focusing on its structure, conduct, and performance (SCP). It examines the market structure through concentration ratios and the Herfindahl-Hirschman Index (HHI), exploring how market concentration impacts competition. The report investigates the conduct of banks, including their advertising strategies, R&D investments, and selling efforts, and assesses how these influence financial performance. Furthermore, it evaluates the performance of US banks, considering profitability, revenue growth, and cost efficiency. The analysis also highlights the drawbacks of the SCP framework in the context of the US banking sector, addressing challenges related to market boundaries and data limitations. The report concludes with a discussion on the dynamic behaviors of buyers and sellers and their impacts on the US banking market, and the failure of policy reforms to enhance the competitive US banking sector. Overall, the report provides a detailed overview of the US banking sector's competitive landscape and financial dynamics.