Analysis of market concentration in the banking sector of the Republic of Srpska Cover Image

Analysis of market concentration in the banking sector of the Republic of Srpska
Analysis of market concentration in the banking sector of the Republic of Srpska

Author(s): Slaviša Kovačević, Predrag Ćurić, Drago Kurušić
Subject(s): National Economy, Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: Finrar d.o.o Banja Luka
Keywords: concentration indices; credit concentration; deposit concentration; banking; banking sector;

Summary/Abstract: Analysis and measurement of the concentration level of the banking market is an important component of the efficient functioning of the economy, an indicator of the development of the financial and real sector, as well as a competitiveness degree indicator in the banking sector. This paper focuses on research and analysis of the concentration level of the banking market of the Republic of Srpska. The main task and goal of this research is to analyze the level of concentration in the banking market of the Republic of Srpska. For the purpose of the research, the following indicators were used: Herfindahl-Hirschman index, concentration ratio, value of entropy measure, variance of natural logarithms, Lorenz curve and Gini coefficient. All calculated measures indicate a gradual trend of increasing concentration in banking in the Republic of Srpska for the observed period, with a slight possibility that in the future there may be distortions in competition.

  • Issue Year: 12/2021
  • Issue No: 4
  • Page Range: 13-30
  • Page Count: 16
  • Language: English, Serbian