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Analysis of the Assets, Credits and Deposits Concentration within the Croatian Banking System based on Selected Concentration Indices

Author

Listed:
  • Mihovil Anđelinović

    (Department of Finance, Faculty of Economics and Business, University of Zagreb, Croatia)

  • Mihaela Milec

    (Deiloitte, Ltd. Zagreb, Croatia)

  • Ksenija Dumičić

    (Department of Statistics, Faculty of Economics and Business, University of Zagreb, Croatia)

Abstract

This paper analyses the concentration of the banking system in Croatia and the impact of concentration on stability of the economic system as a whole over the period since 2002 to 2017. The level of concentration is usually related to the competitiveness of a particular sector, in this case the banking system, which affects the development and health of the country's entire economic system. The banking system, as the basis for the development of all other sectors of the economy, has been analysed here in the context of the concentration trend and efficiency in the selected time period using selected concentration indices: Concentration Ratio, Herfindahl-Hirschman Index, the Gini coefficient and the entropy measure using the variables of total assets of banks, loans granted, and received deposits. This research concludes that in the considered period of nearly 20 years, Croatia was among the EU countries with increased concentration level of the banking system.

Suggested Citation

  • Mihovil Anđelinović & Mihaela Milec & Ksenija Dumičić, 2022. "Analysis of the Assets, Credits and Deposits Concentration within the Croatian Banking System based on Selected Concentration Indices," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 11(1), pages 131-150.
    • Handle: RePEc:cbk:journl:v:11:y:2022:i:1:p:131-150
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    References listed on IDEAS

    as
    1. Yilmaz Bayar, 2019. "Macroeconomic, Institutional and Bank-Specific Determinants of Non-Performing Loans in Emerging Market Economies: A Dynamic Panel Regression Analysis," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 8(3), pages 95-110.
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    More about this item

    Keywords

    concentration; banking system; concentration indices; banks’ assets; credits; deposits; Herfindahl-Hirschman index; Gini coefficient.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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