HK market structure has little impact on profit

Cost efficiency is significantly more important than market structure in determining the profitability of banks in Hong Kong, according to research published by the Hong Kong Monetary Authority (HKMA).

Because larger banks are generally more cost efficient, they can offer services for less and still achieve similar levels of profit as their smaller counterparts. This, the research says, makes smaller banks more vulnerable to competition in the loan market, which can lead to price wars.

To

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