This research examines different hypotheses that explain generic profitability within the framework of the hypothesis of efficiency, representing its main contribution to the use of direct measurement of efficiency through profitability and market competition. This measurement is achieved using pioneering techniques using a model in the scientific work Profitability, market structure and efficiency by M. Gumbau and J. Maudos (2000). Evidence obtained enables us not to reject the hypothesis about the profitability of oil producers in B&H, to determine whether the concentration positively affects profitability, and further, the results in most cases, enabled us to reject a clean hypothesis of efficiency since, although efficiency contributes positively to explaining the differences in profitability, the market share, which encompasses the effect of market power, also has a positive impact on it. So, from results obtained we do not reject the hypothesis of profitability so that we find positive relationship between profitability and the market share of Oil industry in Federation of Bosnia and Herzegovina.

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This paper investigates current and planned investments in new power plants in Bosnia and Herzegovina and impact of these investments on the energy sector, CO2 emission and internationally committed targets for electricity from renewable sources up to year 2020. Bosnia and Herzegovina possesses strong renewable energy potential, in particular hydro and biomass. However, the majority of energy production is conducted in outdated power plants and based on fossil fuels, resulting in environment pollution. New major investments The Stanari Thermal plant (300 MW) and the investment in Block 7 (450 MW) at the Thermal Plant Tuzla are again focused on fossil fuels. The power sector is also highly dependent on the hydrology as 54% of current capacities are based on large hydro power. In order to investigate how the energy system of Bosnia and Herzegovina will be affected by these investments and hydrology, the EnergyPLAN model was used. Based on the foreseen demand for year 2020 several power plants construction and hydrology scenarios have been modelled to cover a range of possibilities that may occur. This includes export orientation of Stanari plant, impact of wet, dry and average year, delayed construction of Tuzla Block 7, constrained construction of hydro power plants, and retirement of thermal units. It can be concluded that energy system can be significantly affected by delayed investments but in order to comply with renewables targets Bosnia and Herzegovina will need to explore the power production from other renewable energy sources as well.

This research explores most dominant lending product to population of Bosnia and Herzegovina, a consumer loan, with aim to answer the question of what factors trigger loan repayment failure. It explores relation of borrower characteristics such as gender, age, level of indebtness to likeliness of loan repayment by use of probit on banking data sample representing 39% of the market share in the country. It identifies factors which lead to loan repayment failure and also provides exact empirical model for default prediction at loan approval stage. Main audience of this research should be banks, which could use the finding of the study to adjust their credit policies and risk appetite to ensure that lending losses from this strongly present product are minimized, thus leading to stable and financially sound banking sector.

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