PECULIARITIES OF DETERMINING BANK COMPETITION

Banking activities should, on the other hand, include economic objectives and, on the other hand, provide financial market needs, and at the same time, it must have the conditions that will make the service available to the bank. In determining the essence of competition in the banking sector, the opinion of the researchers differs, in particular the “banking competition” and “interbank competition”. According to some scholars, these approaches cannot be realized, as the banks are the main competitors at the interbank competition, while banking competition is not only dependent on banks, but also between banking and non-bank credit-financial institutions (investment funds, insurance companies, Top cooperatives, lombards and more.). Banking Competition can be described as a competition on the banking service market, which can be both banks and non-bank credit institutions, while the interbank competition is competition only in the banking sector. The concept of banking competition is conditional, as we have noted, not only banks can be compromised. The financial sector of this market can be distinguished by a variety of competitive battles. The main level is competition between commercial banks, which are traditionally divided into universal and specialized. Previously there was a clear difference between these types of commercial banks. The banks are competitors, when they are on the common market, offering similar banking services on equal terms. The goal of each bank is to attract more clients in order to sell as many banking services as possible to get more benefits. An important feature of the interbank competition is geographical aspect of its action. In different regions, the same bank may have different competitive conditions - in one region he may emerge as a leader and rival to another bank and in another region to rival another bank but to have a stiff competition.