Over the last twenty years, Croatian banking market has been extremely dynamic in terms of market concentration. The number of banks was cut in half, and more often than ever, the banks are merging and acquiring each other. In this thesis there are nine different indices of concentration. Today,...

A growing body of literature indicates that competition increases bank soundness. Applying an industrial organization based approach to large data sets for European and U.S. banks, we offer new empirical evidence that efficiency plays a key role in the transmission from competition to soundness....

It has been argued that competing banks make inefficiently frequent use of collateralization in situations where they are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and collateralization in a model where banks do not have this...