Comparative Analysis of Levels of Banking Sector Markets Concentration in CEE Region

• Main Authors: Kaličanin Tijana, Hanić Azra
• Format: Article
• Language: English
• Published: Institute of Economic Sciences 2016-06-01
• Series: Economic Analysis
• Subjects: market concentration; banking sector; CEE region
• Online Access: http://www.library.ien.bg.ac.rs/index.php/ea/article/view/329/325

Banking sector is an important development factor of the total financial and economic system. Number of banks and dispersion of their individual shares defines competitive structure of banking sector, manifested by its concentration. Market concentration may be presented as a function of a number of enterprises competing in a market and their individual comparative market shares. Concentration analysis is significant with regard to the fact that the level of concentration demonstrates relations among competitors in a market, as well as influence each competitor has on consumers, branch and economy as a whole. Starting from 2008 crisis, domino effect of which hit banking sector and has had a huge impact on it, authors of this paper aimed at establishing a level of market concentration of the banking sector in Serbia and countries in the region in 2015 by application of a large number of market concentration indicators.