– performance paradigm. Measures of concentration and also competition are essential for banks conduction in the banking industry … Sector has changed dramatically in recent years. On 1990s, our country has experienced deregulation, foreign bank penetration …, and an accelerated process of consolidation and competition in the banking sector. Particularly, the working paper …

competition, of which the most common are the concentration ratio and the Herfindahl-Hirschman index. It is important to emphasize … that when calculating the value of these indices, the National Bank of Serbia most often uses the absolute value of assets … competition. Although market changes are reflected in a reduced number of banks while a change in the dispersion of market shares …