Regarding market structure, the concentration ratio—the asset shares held by the three largest banks— in each EAC country compare favorably with South Africa, particularly in the region’s three largest markets. This evidence by itself suggests that the level of competition in the banking sector should be even across these countries. However, bank performance indicators tell a different story: banks are more profitable in the EAC than in South Africa as evidenced by the higher spreads and the return on assets (ROA). Lending spreads, in particular, are about 6 to 8 percent higher in the EAC than in South Africa, while.
