Efficiency in the Market Structure of the Banking Sector in Croatia

Dina Korent – University of Zagreb Faculty of Organization and Informatics, Pavlinska 2, 42 000 Varaždin, Croatia

Anamarija Ratković – Raiffeisen Bank Austria d.d., Petra Preradovića 17, 42 000 Varaždin, Croatia

Marijana Bubanić – University of Zagreb Faculty of Organization and Informatics, Pavlinska 2, 42 000 Varaždin, Croatia

Abstract: The purpose of this paper was to determine the market structure of the banking sector in Croatia and the characteristics of its technical efficien­cy for the period from 2009 to 2022 by applying descriptive statistics and data envelopment analysis (DEA). It was determined that the banking sector in Cro­atia is characterized by a relatively high and persistent technical efficiency of an oligopolistic market structure with a trend of growing consolidation. On average, managers use resources efficiently and are successful in exploiting economies of scale, with scale efficiency surpassing pure technical efficiency. The aforementioned efficiencies generally grow and are achieved more fre­quently with the increase in the size of banks, i.e., credit institutions The re­sults imply that small banks could increase efficiency by more rational use of inputs, and, assuming growing returns to scale, by exploiting economies of scale through internal growth or further sector consolidation

7th International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2023 – Selected Papers, Hybrid (Faculty of Organization and Informatics Varaždin, University of Zagreb, Croatia), October 26, 2023

ITEMA Selected Papers published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ITEMA conference partners: Faculty of Economics and Business, University of Maribor, Slovenia; Faculty of Organization and Informatics, University of Zagreb, Varaždin; Faculty of Geography, University of Belgrade, Serbia; Institute of Marketing, Poznan University of Economics and Business, Poland; Faculty of Agriculture, Banat’s University of Agricultural Sciences and Veterinary Medicine ”King Michael I of Romania”, Romania

ITEMA Conference 2023 Selected Papers: ISBN 978-86-80194-76-9, ISSN 2683-5991, DOI: https://doi.org/10.31410/ITEMA.S.P.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.

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