• citations in SCIndeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:1
  • full-text downloads in 30 days:1


article: 8 from 123  
Back back to result list
2021, vol. 13, iss. 2, pp. 113-131
Does the oligopolistic position of banks affect the performance of the banking sector in the Federation of Bosnia and Herzegovina?
University of Zenica, Faculty of Economics, Federation of B&H
Keywords: Performance; privatization; concentration; banks in Federation of B&H
The level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while there has been an increased concentration of some larger banks in the system. The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model. The results showed that the foreign-owned Banks (FB) variable has a positive impact on the variable return on Assets (ROA), while the variables bank size (BS) and market concentration index for loans (HHI) have a negative impact. The result also showed that the two variables the growth rate of total loans (GRTL) as well as foreign-owned banks (FB) have a positive impact on the variable return on equity (ROE), while the variables market concentration index for loans (HHI) and bank size (BS) have a negative effect. The third result is that the variable net interest margin (NIM) has the strongest positive impact on the two variables foreign-owned banks (FB) and credit growth rate (GRTL), while concentrations for credit placements (HHI) and bank size (BS) have a negative effect.
Abdul, R.N.A.A., Md, R.A.F.B. (2015) Ownership Structure and Bank Performance. Journal of Economics, Business and Management, 3(5): 483-488
Audio, I., Ellouze, A. (2013) Market Structure and Performance of Tunisian Banks. International Journal of Economics and Financial Issues, No.3 (2), pp. 345-354
Bikker, J.A., Haaf, K. (2002) Competition, concentration and their relationship: An empirical analysis of the banking industry. Journal of Banking & Finance, 26(11): 2191-2214
Bikker, J.A., Haaf, K. (2002) Measures of competition and concentration in banking industry: A review of literature. Economic and financial modeling, 9 (2), 53-98
Claessens, S., Jong-Kun, L. (2003) Foreign Banks in Low-Income Countries: Recent Developments and Impacts. in: Hanson James, Honohan Patrick, Majnoni Giovanni [ed.] Globalization and National Financial Systems, Washington, DC: World Bank, 109-150
Claessens, S., Demirgüç-Kunt, A., Huizinga, H. (2001) How does foreign entry affect domestic banking markets?. Journal of Banking & Finance, 25(5): 891-911
Durbin, J., Watson, G.S. (1951) Testing for serial correlation in least squares regression II. Biometrika, Vol. 38, No. 1/2, pp. 159-177
Goldberg, L.G., Rai, A. (1996) The structure-performance relationship for European banking. Journal of Banking & Finance, 20(4): 745-771
Haque, F., Shahid, R. (2016) Ownership risk-taking and performance of banks in emerging economies: Evidence from India. Journal of Financial Economic Policy, 8(3): 282-297
Havrylchyk, O., Jurzyk, E. (2006) Profitability of foreign banks in Central and Eastern Europe: Does the entry mode matter?. Bank of Finland-Institute for Economies in Transition (BOFIT), Discussion Papers br. 5
Hermes, N., Lensink, R. (2004) Foreign Bank Presence, Domestic Bank Performance and Financial Development. Journal of Emerging Market Finance, 3(2): 207-229
Jeon, B.N., Olivero, M.P., Wu, J. (2011) Do foreign banks increase competition? Evidence from emerging Asian and Latin American banking markets. Journal of Banking & Finance, 35(4): 856-875
Kovačević, I. (2012) Banking in Serbia 2001-2011: Changes, results and consequences. in: Banks and Insurance companies in Serbia 2001-2011 and comparison with the countries in the region, Business Info Group, No. 1, pp.38-52
Plakalović, N., Alihodžić, A. (2015) Novac, banke i finansijska tržišta. Banjaluka: Ekonomski fakultet
Staikouras, C.K., Wood, G.E. (2004) The Determinants Of European Bank Profitability. International Business & Economics Research Journal (IBER), 3(6): 57-68
Thapa, M. (2010) Competitive Strategy and Performance of PYC. Nepal Journal of Management, No. 1 (1)
Yildirim, S.H., Philippatos, G.C. (2007) Efficiency of banks: Recent evidence from the transition economies of Europe, 1993-2000. European Journal of Finance, No. 13: pp.123-143


article language: English
document type: unclassified
DOI: 10.5937/bhekofor2102113A
published in SCIndeks: 12/05/2021

Related records

No related records