<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper tends to examine the level of concentration of the banking sector in Bosnia and Herzegovina. The main objective of the paper is to measure the level of concentration and to investigate how the concentration and type of market structure affect the prices of banking products. By monitoring the movement of key indicators, it provides an insight into the state of the B&amp;H banking sector. By using the appropriate index (HHI, CR3), the movement of concentration levels and the shape of the market structure that prevailed in the banking market over a period of time were determined. The results show that there is a moderate concentration in the B&amp;H banking sector, which includes monopolistic competition as a form of market structure. This means that the equilibrium level of production is achieved at a lower volume of production, at higher prices for banking products (above marginal costs), thereby reducing consumer surplus relative to a perfectly competitive market</p></abstract>

This paper tends to examine the level of concentration of the banking sector in Bosnia and Herzegovina. The main objective of the paper is to measure the level of concentration and to investigate how the concentration and type of market structure affect the prices of banking products. By monitoring the movement of key indicators, it provides an insight into the state of the B&H banking sector. By using the appropriate index (HHI, CR3), the movement of concentration levels and the shape of the market structure that prevailed in the banking market over a period of time were determined. The results show that there is a moderate concentration in the B&H banking sector, which includes monopolistic competition as a form of market structure. This means that the equilibrium level of production is achieved at a lower volume of production, at higher prices for banking products (above marginal costs), thereby reducing consumer surplus relative to a perfectly competitive market

Degree of Concentration of the Banking Sector in B&amp;H and the Impact on the Prices of Banking Products

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Degree of Concentration of the Banking Sector in B&H and the Impact on the Prices of Banking Products

This paper tends to examine the level of concentration of the banking sector in Bosnia and Herzegovina. The main objective of the paper is to measure the level...

Degree of Concentration of the Banking Sector in B&H and the Impact on the Prices of Banking Products

Published Online: Jul 17, 2020

Page range: 219 - 234

Received: Feb 19, 2020

Accepted: Jun 04, 2020

DOI: https://doi.org/10.2478/ethemes-2020-0013

Keywords
concentration, banking sector, HHI index, CR3 index.

© 2020 Milica Bojat et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Degree of Concentration of the Banking Sector in B&H and the Impact on the Prices of Banking Products

Published Online: Jul 17, 2020

Page range: 219 - 234

Received: Feb 19, 2020

Accepted: Jun 04, 2020

DOI: https://doi.org/10.2478/ethemes-2020-0013

Keywordsconcentration, banking sector, HHI index, CR3 index.

© 2020 Milica Bojat et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
concentration, banking sector, HHI index, CR3 index.