Concentration Level in the Banking Industry: Serbia, Croatia and Montenegro

: In the last few years there have been significant changes in financial sector on the global level. The aim of this paper is to analyze banking sectors and make a comparative analysis between Serbia, Montenegro and Croatia, given that the banking sector takes up the biggest part of financial sector in these countries. The covered period of the analysis is 2017-2021 and selected ratios of concentration were calculated to define market structures in these countries. Market changes are also reflected in the reduced number of banks due to mergers and acquisitions in the last few years. The results of the static and dynamic analysis of concentration indicate that Serbia’s banking sector is slightly less concentrated than Croatia’s and Montenegro’s banking sector. The decrease in the number of the banks had a significant impact on market structure and it will draw attention to further research.