Woldehanna, Tassew (Dr.)Getahun, Eshetu2021-10-052023-11-042021-10-052023-11-042010-06http://etd.aau.edu.et/handle/123456789/28050This paper attempts to distinguish between the market structure paradigm and the efficiency paradigm using concentration indices and market share into the empirical analysis. Using panel data for the period 2000-2009 pertaining to eight private commercial banks, we find in significant positive relationship between concentration and profitability. The result also does not suggest relation ship between efficiency and profitability. Hence, the paper lends no credence to the impact of imperfections of market conditions as a result of concentration and market share. Moreover, evidence to argue for a more interventionist competition policy in the banking sector is less likely.enStructure; profitability; effici ency; banks; concentration ; panelJEL classificationThesis