scholarly journals Analysis of market concentration in the banking sector of the Republic of Serbia

Bankarstvo ◽  
2021 ◽  
Vol 50 (1) ◽  
pp. 134-153
Author(s):  
Marija Stojmenović
Keyword(s):  
Market Share ◽  
Concentration Ratio ◽  
Concentration Index ◽  
Banking Sector ◽  
Market Concentration ◽  
Main Task ◽  
Significant Component ◽  
Banking Market ◽  
The Republic ◽  
Trend Growth

Analysis and measurement of the level of concentration of the banking market is a significant component of the efficient functioning of the economy, an indicator of the development of both the financial and real sectors and an indicator of the degree of competitiveness in the banking sector. This paper focuses on research and analysis of the level of concentration in the banking market of the Republic of Serbia. The main task and goal of this research is to analyze the level of concentration in the banking market of the Republic of Serbia through the prism of two indicators: the concentration ratio of the five largest banks (CR5) and Herfindahl-Hirschman concentration index (HHI), for the period from 2009 to 2019. The results of the research showed the absence of concentration (overall) in the domestic banking market, but also the existence of a trend (growth of market share of the five largest banks) which indicates that, in the future, there could be distortions of competition.

Market structure-performance hypothesis in Kenyan banking industry

2015 ◽  
Vol 10 (4) ◽  
pp. 697-710 ◽  
Author(s):  
Solomon W. Giorgis Sahile ◽  
Daniel Kipkirong Tarus ◽  
Thomas Kimeli Cheruiyot
Keyword(s):  
Market Structure ◽  
Market Efficiency ◽  
Market Share ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Developing Economies ◽  
Market Concentration ◽  
Bank Performance ◽  
Content Type

Purpose – The purpose of this paper is to test market structure-performance hypothesis in banking industry in Kenya. Specifically, the structure-conduct-performance (SCP) and market efficiency hypotheses were examined to determine how market concentration and efficiency affect bank performance in Kenya. Design/methodology/approach – The study used secondary data of 44 commercial banks operating from 2000 to 2009. Three proxies to measure bank performance were used while market concentration and market share were used as proxies for market structure. Market concentration was measured using two concentration measures; the concentration ratio of the four largest banks (CR4) and Herfindahl-Hirschman Index, while market share was used as a proxy for efficiency. The study made use of generalized least square regression method. Findings – The empirical results confirm that market efficiency hypothesis is a predictor of firm performance in the banking sector in Kenya and rejects the traditional SCP hypothesis. Thus, the results support the view that efficient banks maximize profitability. Practical implications – The study provides insights into the role of efficiency in enhancing profitability in commercial banks in Kenya. It has managerial implication that profitable banks ought to be efficient and dispels the notion of collusive behavior as a precursor for profitability. Originality/value – The paper fills an important gap in the extant literature by proving insights into what determines bank profitability in banking sector in Kenya. Although this area is rich in research, little work has been conducted in the developing economies and in particular no study in the knowledge has addressed this critical issue in Kenya.

scholarly journals Examining manufacturer concentration metrics in consumer packaged goods

2020 ◽  
pp. 147078532090397
Author(s):  
Arry Tanusondjaja ◽  
Steven Dunn ◽  
Christopher Miari
Keyword(s):  
Market Share ◽  
Gini Coefficient ◽  
Concentration Ratio ◽  
Market Competition ◽  
Market Concentration ◽  
Gini Coefficients ◽  
Packaged Goods ◽  
Consumer Packaged Goods ◽  
Positive Correlations ◽  
Multiple Metrics

The research compares three different market concentration metrics (Concentration Ratio, Herfindahl–Hirschman Index, and Gini Coefficient) over the share of revenue (market share) and their application in consumer packaged goods markets. The metrics are further extended into measuring the share of the ownership of brands and stock-keeping units, to provide further insights into the nature of market competition. These metrics are reported across 16 categories between 2010 and 2014 from the United Kingdom. The Concentration Ratio results show an average market share of 88% going to the top 10 manufacturers, despite accounting for 19% of all manufacturers on average. Similarly, Gini Coefficients show large disparities in revenue shares across manufacturers (0.85), while the Herfindahl–Hirschman Index classifies most markets as being moderately concentrated. The research highlights the advantage of observing multiple metrics in measuring market concentration, as a single metric is unlikely to convey the nature of market competition. The results show Concentration Ratio for the top 4 or top 10 to be good proxies for Herfindahl–Hirschman Index, while the top 10% or top 20% market concentration can be used as proxies for Gini Coefficients due to their strong positive correlations. Rather than applying onerous Herfindahl–Hirschman Index and Gini Coefficient calculations and requiring the details for all competing entities as required, the result enables researchers and industry practitioners to diagnose the state of the competition by simply calculating the aggregate market share of the top N and the top N% manufacturers.

scholarly journals Does the oligopolistic position of banks affect the performance of the banking sector in the Federation of Bosnia and Herzegovina?

2021 ◽  
Vol 13 (2) ◽  
pp. 113-131
Author(s):  
Almir Alihodžić
Keyword(s):  
Growth Rate ◽  
Bosnia And Herzegovina ◽  
Concentration Index ◽  
Banking Sector ◽  
Positive Impact ◽  
Market Concentration ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Negative Effect

The level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while there has been an increased concentration of some larger banks in the system. The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model. The results showed that the foreign-owned Banks (FB) variable has a positive impact on the variable return on Assets (ROA), while the variables bank size (BS) and market concentration index for loans (HHI) have a negative impact. The result also showed that the two variables the growth rate of total loans (GRTL) as well as foreign-owned banks (FB) have a positive impact on the variable return on equity (ROE), while the variables market concentration index for loans (HHI) and bank size (BS) have a negative effect. The third result is that the variable net interest margin (NIM) has the strongest positive impact on the two variables foreign-owned banks (FB) and credit growth rate (GRTL), while concentrations for credit placements (HHI) and bank size (BS) have a negative effect.

scholarly journals FORMATION OF COMPETITIVE ADVANTAGES IN THE BANKING SECTOR THROUGH THE USE OF CORPORATE ENTREPRENEURSHIP TOOLS

2021 ◽  
Vol 9 (4) ◽  
pp. 117-132
Author(s):  
A. N. Kuznetsov
Keyword(s):  
Market Share ◽  
Banking Sector ◽  
Corporate Entrepreneurship ◽  
Operational Efficiency ◽  
Retail Banking ◽  
Competitive Advantages ◽  
Strategic Positioning ◽  
Banking Services ◽  
Banking Market ◽  
Credit Institutions

The competitiveness of credit institutions in the retail banking market lies in their ability to conduct business in this market in order to obtain the highest possible market share and profits. Achieving these goals is linked to the level of operational efficiency and strategic positioning or differentiation of banking services. Consider the tools of corporate entrepreneurship that form competitive advantages in the banking sector.

scholarly journals Social networks as a segment of digital marketing in banking

2020 ◽  
Vol 8 (2) ◽  
pp. 57-69
Author(s):  
Nevena Milić
Keyword(s):  
Social Networks ◽  
Information And Communication Technologies ◽  
Banking Sector ◽  
New Technologies ◽  
Digital Communication ◽  
Communication Channels ◽  
Banking Market ◽  
Information And Communication ◽  
The Republic ◽  
The Impact

The accelerated development of information and communication technologies has led to a change in the way the banking sector operates. If a comparison is made between a traditional and modern banking, it can be clearly seen that new technologies have helped banks to develop and offer their customers new products and services, as well as to perform their marketing activities in a cheaper and more efficient way. The globalization of the financial market, the development of new technologies, as well as the growth of customer requirements are the causes of increasing competition in the banking market. In order to survive in the market and cope with the challenges of the modern age, banks are increasingly focusing on marketing, which is becoming the main weapon. Digital communication channels such as social networks, Web banners, blogs, display ads allow banks to place their products and services to customers in the best possible ways. The research conducted in this paper aims to indicate the impact of the use of digital communication channels on the profitability of the bank, and on the other hand to point out all the benefits of bank customers who use modern methods of advertising. The research methodology is based on a review of the literature. The subject of the research are the ways in which banks use digital communication channels, with special reference to social networks, which are the most represented communication channels in the banking market in the Republic of Serbia.

scholarly journals Banking Market Concentration and Bank Efficiency. Evidence from Southern, Eastern and Central Europe

2021 ◽  
Vol 16 (1) ◽  
pp. 38-52
Author(s):  
Sylwester Kozak ◽  
Agata Wierzbowska
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Stochastic Frontier ◽  
Market Concentration ◽  
Stochastic Frontier Approach ◽  
Bank Efficiency ◽  
Explanatory Variables ◽  
Eu Countries ◽  
Banking Market ◽  
The Relationship

Abstract The importance of the question about the relationship between concentration and efficiency lies in the fact that banks’ efficiency affects ability to extend loans and ensure financial stability of the banking sector. The study examines this relationship on the example of 150 banks operating between 2005 and 2019 in 11 EU and 8 non-EU countries from the SECE region. The value of profit efficiency was assessed with the stochastic frontier approach, and next regressed with the banking market concentration and bank specific and macroeconomic explanatory variables. The results for the entire sample as well as for domestic and foreign-owned banks indicate that concentration positively and nonlinearly impacts bank efficiency, both in EU and non-EU countries. Moreover, the size of a bank and income diversification help to improve efficiency of banks in the SECE region. The study shows that banks in SECE countries seem to follow the efficient structure hypothesis.

scholarly journals Analisis Pengaruh Struktur Pasar dan Perilaku Pasar Terhadap Kinerja Pasar Pada Bank Umum Syariah di Indonesia dan Malaysia Tahun 2011-2015

2017 ◽  
Vol 4 (5) ◽  
pp. 367
Author(s):  
Rachma Revida ◽  
Dina Fitrisia Septiarini
Keyword(s):  
Panel Data ◽  
Market Share ◽  
Concentration Ratio ◽  
Market Concentration ◽  
Islamic Banks ◽  
Panel Data Regression ◽  
Analysis Technique ◽  
Data Regression ◽  
And Performance

The aim of this study was to analyze the influence of market concentration, market share, and OEOR on profitability in Islamic Banks in Indonesia and Malaysia in 2011 – 2015 using the paradigm of structure, conduct, and performance. The samples of the study consisted of a total 11 Islamic banks in Indonesia and 16 Islamic banks in Malaysia. The analysis technique use in this study was panel data regression using Eviews 7.0 programme. The independence variables of the study were market concentration ratio Herfindahl-Hirchman index), market share, and OEOR, while the dependent variable was the return of asset (ROA). The results of this study indicate that market concentration and market share variables not significantly affect the ROA of Islamic banks in Indonesia and Malaysia, while the OEOR variable has significant effect to the ROA of Islamic banks in Indonesia and Malaysia.

scholarly journals Evaluation of Slovak Automotive Industry Competitiveness Based On Market Concentration Indicators

2020 ◽  
Vol 83 ◽  
pp. 01022
Author(s):  
Vladimír Hojdik
Keyword(s):  
Market Share ◽  
Automotive Industry ◽  
Concentration Ratio ◽  
Slovak Republic ◽  
Market Concentration ◽  
Business Environment ◽  
Herfindahl Index ◽  
Innovation Activities ◽  
Industry Competitiveness ◽  
The Impact

This paper evaluates the concentration of Slovak automotive industry, and its potential impacts on competitiveness and innovation activities of businesses operating within the industry. It analyses the concentration of automotive industry by using relevant metrics as market share, concentration ratio CR3, CR5, CR10 and Herfindahl index. The aim of this paper is to analyze financial results of Slovak automotive businesses, then measure the degree of concentration of whole industry in order to explain industry competitiveness in context of Slovak economy. Finally, the paper should inspire a reader in order to make him consider, what is the impact of strongest automotive companies on whole business environment in Slovak Republic.

scholarly journals Competition and Concentration in Bangladeshi Banking Sector

2016 ◽  
Vol 5 (1) ◽  
pp. 16-29
Author(s):  
Anwar Hossain Repon ◽  
Zahidul Islam
Keyword(s):  
Market Structure ◽  
Concentration Ratio ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Market Concentration ◽  
Sample Period ◽  
Banking Competition ◽  
The Past ◽  
Bank Concentration

The purpose of this paper is to investigate the market structure and degree of concentration of Bangladeshi banking industry. The study measured market concentration by using widely recognized measures like k-bank concentration ratio and Herfindahl-Hirchman Index (HHI). It evaluates market structure by applying Panzar-Rosse Model over 8 years period from 2006 to 2013. The result of concentration measures indicates a decreasing trend and low level of market concentration in Bangladeshi banking industry over the sample period. The panzer-Rosse “H-Statistic” suggests that banks in Bangladesh are operating under monopolistic competition. Present paper contributes to a burgeoning literature on banking competition that has evolved significantly over the past periods on a developing country perspective like Bangladesh.

scholarly journals PENGARUH KONSENTRASI STRUKTUR PASAR TERHADAP KINERJA INDUSTRI KOMERSIAL PERBANKAN DI INDONESIA PERIODE TAHUN 2007 - 2011

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Mr Rofanov
Keyword(s):  
Market Structure ◽  
Market Share ◽  
Commercial Banks ◽  
Concentration Ratio ◽  
Banking Industry ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Net Interest Margin ◽  
Banking Market ◽  
Capital Adequacy Ratio

Based on the ratio of market share of 11 commercial banks discovered the phenomenon gap of the period 2007-2011 where 11 commercial banks dominate the banking market predominantly in Indonesia, including four state-owned banks. This phenomenon has resulted in the banking market structure tends to form an oligopoly, it is obviously affecting the behavior of banks that have a dominant position to maintain supernormal profit, which is reluctant to extend credit with low interest tribes and not a reflection of efficient behavior that ultimately lead to the real sector can not run role in the economy because of factors hampered financing. And with the market conditions are 11 commercial banks were so dominant, which is feared if one bank's collapse could affect the performance of banks in a systemic and even disrupt the Indonesian economy in general. The objectives of this research to determine the form of the banking market structure and analize the influence of concentration market structure and Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Net Interest Margin (NIM), and Loan to Deposit Ratio (LDR) to Return on Asset (ROA) wich is as a proxy of Financial Performance Banking in 2007 until 2011 periods. The data in this study was collected from Indonesian Banking Directory of 2007-2011. The collected sample was 11 biggest commercial banks over the period from 2007-2011. The analysis model  was used to determine the shape of banking market structure by using CR4 concentration ratio (Four Concentration Ratio) on a share of the assets, the share of third-party funding (DPK) and the share of loans, that produce banking that shaped the oligopoly market structure moderate low or concentration oligopoly level IV, where four largest banks a dominate about 42% - 50% market share. The estimation of the Fixed Effect Model unknown  that concentration market, market share, Capital Adequacy Ratio (CAR), Net Interest Margin (NIM) and the Loan to Deposit Ratio (LDR) has a positive effect on profitability (Return on Assets ) as a proxy for the performance of the banking industry. And for the  Non Performing Loan (NPL) has a negatively effect on profitability (Return on Assets) as a proxy for the performance of the banking industry.

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