Evaluation of Indicators of the Market Structure Concentration of Ukraine's Banking System
Journal Title: Бізнес Інформ - Year 2014, Vol 6, Issue 0
Abstract
In modern conditions, the actual problem is the formation of the optimal structure of the banking system. This requires management to react quickly to changes and implement qualitative changes in their operations. Possibility of a monopoly in the banking market as a result of the interaction of banks and competition justifies the importance and relevance of concentration research. The purpose of the article is to assess the level of concentration of the banking system and the process of concentration trends in 2004 - 2013. The article analyzes the concentration indices: the Herfindahl - Hirschman concentration index, the overall index of industry concentration. Scientists' approaches to the evaluation of concentration of the banking system were examined. For a stable situation in the banking market there should be a limited number of banks that will give them the opportunity to reduce the cost of asset allocation and diversification. Therefore, the concentration of bank capital should be considered as one of the priority directions of development of the banking system. In future research is promising, given that it is fairly new problems. In particular, the establishment of optimal borders of banking capital concentration in order to determine the ratio of the concentration processes of risk and return of banking activities.
Authors and Affiliations
Kateryna Sutormina
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