Konstantinos Baltas

European banking markets are undergoing unprecedented changes due to deregulation of financial services, establishment of the economic and monetary union (EMU) and developments in information technology. Many of these changes have vast implications for efficiency, competition and concentration in the banking and other financial sectors. The undergoing study aims to review and explain the empirical methods and results of the numerous surveys that have been performed concerning the efficiency of financial institutions, such as banks. Second, it attempts to investigate thoroughly the fact that banks typically do not operate in perfectly competitive environment but rather in oligopolistic markets which are characterized by market imperfections. Additionally, it presents the trade-off between market power, an essential condition for stability in the banking system, and a competitive banking system, which is more efficient and it can lead to growth. Third, it will analyze the conditions of the Greek banking sector, which are characterized by oligopolistic behaviour and the existence of the so- called "Cartels" and the innovations as well that took place in this market.