Review article
Changes in Quantitative Indicators of Concentration in the Countries of this Region during the Transformation Period of Banking Systems
Roman Šubić
; Croatian National Bank
Marina Proklin
; FINA Regional Centre Osijek
Jasna Zima
; Faculty of Civil Engineering Osijek
Abstract
The reshaping processes of the banking systems in the countries of this region that involved the reorganization
and restructuring of insolvent banks as well as the privatization of the state banks were aimed at setting
up a framework within which banks would operate according to the modern market principles. With the
opening of the banking market to foreign capital, the foreign banks have gained access to the banking market
and have over a ten-year period significantly increased their market share. Due to the existing barriers to entry
into the market, foreign-owned banks tended to use the strategy of buying shares in already-established
banks rather than starting up a new bank. Comparisons between concentration indicators showed that there
are differences among countries and mostly these differences result from the differences in the size of the
banking systems and the size of national economies. Still, the values of quantitative indicators of concentration
in countries with larger banking systems are lower than in countries with fewer banks.
Keywords
quantitative indicators of concentration; mergers and acquisitions; banking system
Hrčak ID:
57843
URI
Publication date:
5.7.2010.
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