Concentration and Competition in Serbian Banking Sector in the Period 2016–2018

The paper deals with the analysis of the degree of concentration and competition in Serbian banking sector in the period 2016–2018. The analyses are based on the data of bank financial statements for relevant years, as well the results of other researchers and reports of the National Bank of Serbia. It was used the traditional concentration indicators (CRn and HH indices), as well as the Gini coefficients and not only in Serbia the relatively rarely used Linda indices. The concentration degree in all cases is calculated based on five variables: total assets, deposits, capital, bank operating income and loans. Although these variables are highly correlated, the results show relative important differences. In the case of such variable as capital, the Linda indices suggested the existence of the oligopoly structure. As conclusion, it was demonstrated that in the case of the relatively large number of banks in Serbia, the existing concentration degree is generally moderate low, which provides suitable conditions for the development of healthy competition among them