Measures оf concentration level in the banking sector: empirical evidence from Serbia, Croatia and Montenegro

Abstract

In the last few years there were significant changes in the financial sector on the global level. The aim of this paper is to analyze banking sectors among Serbia, Montenegro and Croatia and make comparative analysis. In these countries the biggest part of financial sector is the banking sector. The covered period of the analysis is 2017-2021 and selected ratios of concentration were calculated to define market structures in these countries. Due to mergers and acquisitions in the last few years the number of the banks decreased significantly. The presented results regarding static and dynamic analysis of concentration indicate that Croatia and Montenegro banking sectors are more concentrated than Serbia banking sector. The significant impact on market structure is the decreasing number of the banks. This is an interesting finding which should be further researched.

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