Interplay Between Market Concentrаtion and Competitive Dynamics in The Banking Sector

Lončar, Dragan and Đorđević, Aleksandra and Lazić, Milena and Milošević, Siniša and Rajić, Vesna (2016) Interplay Between Market Concentrаtion and Competitive Dynamics in The Banking Sector. Ekonomika preduzeća, 44 (5/6). pp. 332-346. ISSN 0353-443X

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Abstract

The paper tests the fundamental premise of the SCP paradigm – whether
there is a linear interplay between the variation of the degree of concentration
and the degree of competition within the banking sectors in Serbia,
Croatia, Romania and the Czech Republic, and how intense this interplay
is, if it does exist. The analysis uses panel data for selected concentration
indicators (the Herfindahl-Hirschman Index and the concentration ratio
for the five largest banks) and concentration indicators analyzed on the
basis of profitability indicators (the interest rate spread) for the 2009-2014
period. An isolated analysis of the degree of concentration indicators of
the selected banking sectors indicates that Serbia displayed the lowest
degree of concentration, while the highest one was recorded in Croatia.
The results of testing the degree of quantitative agreement between the
analyzed indicators of concentration and profitability show that the SCP
paradigm was successfully proven in cases where it was not expected,
considering the values of concentration and profitability indicators, which
may primarily be explained by the specifics of the banking sectors in the
analyzed European countries.

Item Type:	Article
Additional Information:	COBISS.ID=227232012
Uncontrolled Keywords:	market concentration, competition, profitability, banking sector, the SCP paradigm
Research Department:	Macroeconomics
Depositing User:	Jelena Banovic
Date Deposited:	16 Dec 2020 13:02
Last Modified:	16 Dec 2020 13:02
URI:	http://35.240.28.64/id/eprint/1518
Author Links:	[error in script] No links available.

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