Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2020, No. 4, Article 2, Year of publication: 12, December, 2021

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


Slaviša Kovačević, PhD*; Predrag Ćurić**; Drago Kurušić***

*PhD Associate Professor, University of Banja Luka, Faculty of Economics, Department for Economic Theory, Analysis and Policy,  **NLB Bank a.d. Banja Luka,  ***BitLab d.o.o. Banja Luka



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.

Keywords: concentration indices, credit concentration, deposit concentration, banking, banking sector

DOI: 10.7251/FIN2104013K

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