MARKET STRUCTURE AND PERFORMANCE IN THE BANKING INDUSTRY

This paper reviews the analysis of market structure and performance in the banking industries in selected countries with special remark on Croatia. During the last two decades, Croatian banking industry has experienced a transition period as a consequence of deregulation of financial services sector, development in information technology and globalization of the banking industry. Impacts of that changes were observable in areas such as number of banks and bank branches, used technologies, quality of human resources and the scope of banking operations in the industry as well as regulatory frame and institutional structure of the banking industry. This paper investigates correlation between banks' market structure and banks' performance and their impact on the performance of the banking industry. Therefore, efficiency and productivity as well as concentration are an important requirement for the development of the banking industry.