COMPETITION IN THE ALBANIAN BANKING MARKET

Abstract

The objective of This Paper is to analyze competition in the Albanian banking market refering the period 2009-2013. To determine what we have in this market structure, monopolistic competition or oligopoly market structure. If we have an oligopoly form what features it has compared to the classical form of oligopoly and fair competition affects. The period is analyzed coincides with the apparent decline rate of increase of the GDP and the global recession. This objective sought to be achieved by using a set of coefficients that index and provide some degree of concentration of the main indicators of the banking system. So are using CR concentration coefficient, the Herfindahl index of concentration -Hirschman, Hall-Tideman, CCI industrial concentration, the Gini index, etc.Pearson Correlation Coefficient. Through these indices examine the extent of concentration and degree of connectivity between synthetic indicators. The conclusion of the analysis is that the banking market have a special kind of oligopoly and monopolistic competition does not have. This situation is reflected in the volume of loans, deposits to each of them to the total system, the high interest rates on loans and lower deposit. Reactions reflected in Commercial Banks indifferent to the expansionist policy of the Central Bank over the years etc.

DOI: 10.5901/mjss.2014.v5n22p57