ABSTRACT
This chapter explores the problem of technological revolution and related institutional transformations. These transformations have a significant impact on the banking markets and the competition in the banking sector of economy, namely on the composition of competitors, forms, and methods of competition. According to our proposition, modern practice of banking competition requires alternative approaches for the evaluation of the following competition aspects: competitive positions of financial institutions, change in the composition of competition participants, and management of competitiveness-ensuring processes. Technological revolution of the last decades led to sweeping changes in the area of global specialization of labor and employment, the structure of economic systems, visions of equipment capabilities, the ratio of real to financial sectors of economy, and the role of banks in economic systems. In order to respond to external challenges, overcome vulnerabilities, and increase competitiveness of the national monetary and credit institutions, it is necessary to mark the priorities described in the chapter.
