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Article
Competition in Small Banking Sector: The Case of Polish Cooperative Banks
Grazyna Wozniewska
ABSTRACT. Now, the banking services market is characterized by intense and constantly growing competition. Some authors report that the large commercial banks do not consider small banks their competitors. But while globally small banks do not pose a competitive threat to huge banks, the local markets witness fierce competitive rivalry. And small banks achieve a competitive advantage in local markets. To maintain this advantage, they must identify and monitor their main rivals. The aim of this paper is to identify and characterize the main competitors of small banks illustrated with the example of cooperative banks in Poland. The paper describes the competitive environment of small banks as well as the results of the author’s study concerning the identification and perception of their main competitors by small banks, i.e. cooperative banks, in Poland.
KEYWORDS: banking sector, competition, small banks, cooperative banks, Poland.
JEL classification: G21, G32, L10, P2.