MEASURING COMPETITIVENESS OF BANKS IN LATVIA

Abstract

Analysis of competition in the banking industry allows to determine the obstacles to its effective functioning. The aim of this research is to analyse the competitiveness level in the modern banking sector of Latvia.Identification and analysis of the main characteristics of the competitive environment of the banking sector in Latvia is done on the basis of indicators characterizing the concentration of the industry, the intensity of competition as well as financial indicators reflecting the financial condition of banks and affecting their competitiveness.As a result, for the first time the level of competitiveness of the banking sector in Latvia was evaluated and supported by comparative analysis of all the banks on the basis of their financial performance. It gives ground for recommendations to the stakeholders on measures to raise competitiveness. Results and directions for further research can attract attention of the research community in Latvia, European Union and globally.