| Summary: | This paper seeks to explore the various factors that affect the competition among the three largest commercial banks in Singapore, namely DBS, Overseas Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB). These factors include the capacity to compete, the price competition in terms of increasing interest rates on deposits and the non-price competition such as the variety of products and the amount of marketing.
Our findings show that despite having the greatest amount of total assets,
other indicators such as the non-performing loans ratio, the capital adequacy ratio and the
total common equity ratio show that DBS has the least capacity to compete. In addition,
there is little price competition while non-price competition among the commercial banks
exists in the form of product differentiation and marketing.
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