The impact of market concentration on competitivness of the banking sector in Serbia

Đuranović, Gordana and Filipović, Sanja (2021) The impact of market concentration on competitivness of the banking sector in Serbia. Industrija, 49 (3-4). pp. 25-45. ISSN 0350-0373 eISSN 2334-8526

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The concentration level is proof of development and tendencies on the observed market. It determines the existence of competition and fair play among competitors and participants. This paper aims to analyse and measure the concentration level within the banking sector in the Republic of Serbia. The concentration level is measured applying the concentration ratio for four and five biggest banks (Cr4 and Cr5) and Herfindal-Hirschman index (HH index) in the period from 2018 to the third quarter of 2020 for the following banks' balance sheet positions: assets, approved loans, and collected deposits. The banking market is reported to be medium concentrated according to CR5 and low concentrated according to Cr4 and HHI in all observed categories. The empirical research shows that there is competition among banks in Serbia (loose oligopoly), which depends on the concentration level.Furthermore, the acquired results contributein the comprehension and perception of the direction in which the Serbian banking sector, as an example of an industry in a small emerging country, is progressing towards a modern financial market through bank consolidation.

Item Type: Article
Uncontrolled Keywords: banking sector, concentration, competition, CRn, HHI, bankarski sektor, koncentracija, konkurencija.
Institutional centre: Centre for economic research
Depositing User: Vesna Jovanović
Date Deposited: 08 May 2022 17:25
Last Modified: 08 May 2022 17:25

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