The Banking Competition – State and Perspectives

The aim of the research is to make a review and appraisal of the Banking competition between the commercial Banks in this country and its Reveal in the basic directions of the Banking activities in order to expose the problems and determine the prospects of its development. For the realization of the aim laid down, the Following tasks hopefully have been decided: • Observation of the essence of the Banking competition and the basic factors, which have influence over its intensity; • Analyze and appraisal of the Banking competition in this country both as a whole and in the basic directions of the banking activities – on the deposit and credit market, and on the market of intermediary services. Appraisal of the approaches in carrying out the competition price and non price approaches; • Outline of the perspectives and possible directions for development of the banking competition in this country on the background of the expected changes in the structure of the Banking branch under the influence both of foreign and domestic factors. Observation of the potential possibilities of the small and medium Bulgarian Banks to play the role of outsiders-innovators in order to avail themselves to the forthcoming changes. The principal conclusion is, that the future positions of the separate Banks will depend on their approach to the competition and will be defined by the competition advantages of higher rank and choice of narrower front of a competition.