Bigger market share equals higher bank profits in Bulgaria, study finds.
Market share has a positive impact on bank profitability in Bulgaria. The study looked at data from 22 banks between 2006 and 2010. The more market share a bank has, the more profitable it tends to be. Concentration in the banking sector doesn't affect profitability. Profitability is mainly influenced by management decisions, not external factors. Banks can increase profits by growing their market share, and concentration in the industry isn't a big concern for bank managers.