Farhad Khodadad Kashi - Economics Department, Payame Noor University, ۱۹۳۹۵-۴۶۹۷, Tehran, Iran
Jamal Zarein - M. A. in Economics, Ministry of Education, Payame Noor University, Tehran, Iran
Yeghaneh Mosavi - Department of Economics, Payame Noor University, ۱۹۳۹۵-۴۶۹۷, Tehran, Iran

The Iranian banking sector has undergone huge and substantial reform in the last decade; privatization, establishment of private banks and development of modern technologies (IT). This paper investigates the competitive condition of the Iranian banking industry over the period ۲۰۰۵-۲۰۱۰ using the H-statistic proposed by Panzar and Rosse. The properties of this non-structural methodology make it an excellent framework for assessing the degree of competition in the banking industry. To calculate H statistics, a reduced form of revenue equation was estimated. The calculated H statistics for the whole sample period was ۰.۷۱۰۱.The extent of H statistics and the result of wald test indicate that the structure of Iranian Banking sector is neither monopoly nor competition. Our findings were in favor of monopolistic competition.

Competition, Iranian Banking Industry, Market Structure, Panzar-Rosse