EFEKTI M&A NA KVALITET USLUGA BANKARSKOG SEKTORA U BOSNI I HERCEGOVINI EFFECTS OF M&A ON BANKING SERVICE QUALITY IN BOSNIA AND HERZEGOVINA
The main goal of the paper is analyses of level, structure and efects of foreign direct investments (FDI), specifically in the form of mergers and acquisitions (M&A), in banking sector of Bosnia and Herzegovina. We analysed quality of services bosnian banks offer to the clients too, in order to evaulate positive effects of growing level of M&A and to stress problems bosnian banks face with in the quality services area. We used total banking assets, interest rates, structure of deposits and loans and profitability in order to evaluate banking sector itself and research among banking clients and SERVQUAL model in order to evaluate clients’ expectations and perceptions. Based on the results we obtained, it is possible to conclude that the FDI inflow has brought about the growing competition among banks on B&H market. Banks compete for each client, but mostly using conventional marketing instruments. On the other hand, we found that there is a significant gap between clients’ expectations and perception, even regarding foreign banks. We found that the main reason is a very high level of expectations created by advertising and other promotional activities by foreign banks (traditional marketing instruments), used in order to attract new clients.