Concentration and Competition in Serbian Banking Sector

Bukvić, Rajko (2017): Concentration and Competition in Serbian Banking Sector. Published in: The Scientific Journal of Cahul State University "Bogdan Petriceicu Hasdeu": Economic and Engineering Studies No. 2 (2017): pp. 4-12.

Abstract

The paper analyzes the degree of concentration and competition in Serbian banking sector on the basis of bank financial statements for year 2016. It uses the traditional concentration indicators (CRn and HH indices), as well as the relatively rarely used Linda indices. The concentration degree is calculated based on five variables: total assets, deposits, capital, bank operating income and loans. It was demonstrated that in the case of the relatively large number of banks in Serbia, the existing concentration degree is low, which provides suitable conditions for the development of healthy competition among them.

• Item Type: MPRA Paper
• Language: English
• Keywords: Concentration, competition, banking sector, Serbia, indices Linda, Herfindahl-Hirschman index, concentration ratio
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C38 - Classification Methods ; Cluster Analysis ; Principal Components ; Factor Models; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General

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