The Competitive Structure Of The Bank Industry In The Face Of Major Market Disturbances: Evidence From Croatia
This paper looks into the dynamics of the competitive structure and strategic positioning of Croatian banks over the ten years period. Croatian financial system is dominantly bank-based which means that banks play a leading role in allocating capital and overseeing the investment decisions, making the bank system a cornerstone of the entire economic matrix of the country. Over the ten years covered by the study, we have witnessed long period of strategic instability in this industry which determinants and consequences are described in the paper. Besides that, our study provides empirical evidence on the determinants of competitiveness in Croatian bank industry as proposed by the Porter's five competitive forces analytical model. Finally, the paper emphasizes the importance of regulatory frame for competitive actions and explains its role in maintained of status quo competitive structure.
Key Words: banking industry, Croatia, industry analysis, competitiveness, Porter's model