THE DYNAMICS OF MARKET POWER ON THE BANKING MARKET IN CROATIA

Over the last ten years, the number of banks in the Croatian market has decreased by nine, usually because of merger, bankruptcy or liquidation. This article analyzes the market power dynamics of the banking market in the Republic of Croatia from 2008 to 2017. The aim of the thesis is to show the influence of change in quantity and total assets of banks on the market concentration. Based on the calculated indices, the next conclusions are reached: 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. Today, there are 26 commercial banks active on the Croatian banking market, which have the elements of both, oligopoly and monopolistic competition.