Measuring concentration of the banking market of the Republic of Croatia

Over the last twenty years, Croatian banking market has been extremely dynamic in terms of market concentration. The number of banks was cut in half, and more often than ever, the banks are merging and acquiring each other. In this thesis there are nine different indices of concentration. Today, there are 26 commercial banks active on the Croatian banking market, which has the elements of both, oligopoly and monopolistic competition. Indices that contribute to the larger banks lead the conclusion toward oligopoly, however indices that emphasize the importance of smaller banks point to moderate and even low concentration. From the year of 2000 until today, the number of banks was cut in half which resulted in increase of the concentration on the banking market. This trend is also expected in the future due to increased merging and acquisitions.