Banking concentration and performance: A look at the Puerto Rico financial industry

Abstract

This dissertation examines market concentration and its implications on the financial industry of Puerto Rico, focusing on the depositary, non-depositary, and cooperative sectors. Despite a decrease in the number of institutions from 2004 to 2019, research on this topic has been limited. The study consists of two chapters: Chapter 1 covers data collection, challenges, and the methodological framework, establishing a robust foundation for analysis. Chapter 2 explores patterns in market concentration, market power, profitability, and efficiency within Puerto Rico's financial industry. Through meticulous analysis, this chapter reveals significant trends shaping the industry. By examining concentration levels, market power dynamics, and performance indicators, the research provides valuable insights into the changing financial landscape. The dissertation contributes to knowledge on Puerto Rico's financial industry, offering a resource for policymakers, experts, and researchers. The findings can inform decision-making to foster a more competitive and sustainable financial sector.