Типови Промена Концентрације У Банковном Сектору Србије: Декомпозиција Индекса Хиршмана-Херфиндала (Types of the Changes in Banking Sector of Serbia Concentration: Decomposition of the Hirschman-Herfindahl Index)

Abstract

On the basis of five balance variables in bank balances (total assets, deposits, capital, operating income, and loans), the Hirschman–Herfindahl indices for period 2016–2021 (I–IX) are calculated. The indices values are decomposed by the Bajo and Salas approach, and the impacts of number of banks and dispersion of its market shares are established. Then we classified the concentration changes, depending on relations between the rates of changes of two factors. They were unequal and vary during the years. Among the identified types of changes there was the most frequent decrease of HHI, caused by decrease of unequality of market shares and decrease of number of banks, where the first was greater. At the end, in 2021 there was the decrease of banks number with increase of dispersion of its shares, which is in theoretical sense condition for the increase of concentration index.

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Keywords: Concentration, banking sector, decomposition of the index Hirschman–Herfindahl, number of banks, dispersion of market shares, types of the concentration degree changes