Macao’s banking industry has experienced major events and undergone significant changes in recent decades, such as the Asian Financial Crisis in 1997 & 1998, SARS in 2003, the booming economy of Macao in the 2000s, the global financial crisis in 2008, the restructuring of the regulatory authority, the entry and exit of various banks, and the M&A of some banks. It is therefore worth investigating how these issues have affected the competitive condition of Macao’s banking industry. Therefore, in addition to examining the period from 1999 to 2010 as a whole, this thesis examines the competitive conditions prevailing during two sub-periods, 1999 to 2007 and 2008 to 2010. The purpose is to examine how the global financial crisis and the M&A of ICBC and Seng Heng Bank in 2008 have altered competition. To achieve this, this thesis empirically employs the k-bank concentration ratio and the Herfindahl-Hirschman Index (HHI) to assess market structure and employs the H-statistic of the Panzar-Rosse model to assess competitive conditions. The results show that the competitive conditions during the entire period and two sub-periods represent a monopolistic competition, for which two separate dependent variables, core business (the ratio of Interest revenues to Total assets) and off-balance sheet activities (the ratio of Total revenues to Total assets), are assessed. The results of the year-by-year estimations show that the intensity of competition in core business activities increased after a financial crisis but that competition in off-balance sheet activities became less intense after a financial crisis.