Banks are the most important financial institution in transition countries Therefore all other sectors depend on banks safety, stability and its risk management skills. With their function of intermediaries they have strong influence on economic growth. However, they can not fulfil their function of intermediaries if they become illiquid, which additional raises the in confidence in banking sector and possibility of bank crises. Banks like the other firms borrow money and transform it in different forms of assets. Liquidity risk present possibility of negative consequences on bank's liquidity under impact of different events, like withdraws deposits. Goals of liquidity management includes: estimation of all cash outflow liabilities on daily basis, settlement of minimum reserve requirements and avoidance of additional cost of emergency borrowing and forced liquidation of assets. The basic challenge for bank's liquidity management is uncertainty about clients' behavior and inter-dependencies between taking credits and deposit withdrawing. Therefore, banks must create safety zone for liquidity risk and adopt BIS Sound principles for managing liquidity risk in order to improve liquidity management.

This paper examines the characteristics of dividend paying firms in Bosnia and Herzegovina. The research is conducted on a sample of 35 largest public firms during the period of five years, from 2013 to 2017, using multiple linear regression and logistic regression. The aim of the research is to explore the internal determinants of dividend payouts and to find whether there are any deviations from empirical experiences in the world. The research results show that larger and more profitable firms are more likely to pay dividends, while more indebted and closely held firms are less likely to pay dividends. The negative relation found between the dividend decision and investment opportunities is not statistically significant. The research results also show that the size is positively associated with higher payout ratios, while the payout ratios decrease with greater use of financial leverage. Profitability, investment opportunities and ownership concentration do not affect the level of dividend distribution.

This paper examines the key macroeconomic factors of non-performing loans (NPLs) in the banking sector of Bosnia and Herzegovina. The research is conducted on quarterly time series data within the period from 2005 to 2019. The autoregressive distributed lag (ARDL) approach is used to model the long-run and short-run relationship between macroeconomic time series. The research results show that increase in real GDP is associated with decrease in NPLs, while rising unemployment and consumer prices are correlated with higher levels of NPLs at 5% significance level.

Instruments for Pre-Accession Assistance (IPA) are one of the most important instruments fo EU development and regional policy avaliable to the candidate countries for EU accession. Enlargement of EU can cause, what already can be seen, considerable problems. Especially when the level of economic development is lower in some new member states and candidate countries than in “ old “ EU member states. Amon these countries are also western Balkan countries which use IPA funds (IPA I and IPA II) to solve problems caused by lack of money on national, regional nad city level as well as for the citizens. The aim of this paperwork is to explain what the European Commission has done by analyzing experiences in the utilizing IPA I funds. In the paper work we try to explain the new conditions, beside indispensable Stabilisation and Association Agreement, for programming and absorbing IPA funds that should increase impacts of financial and technical support for achievement of reform goals, particulary emphasising EU 2020 Strategy for smart, suinstable and inclusive development.

Croatian National Bank is not targeting inflation but exchange rate as the nominal anchor or intermediary goal of monetary policy and inflation in Croatia is a dominantly foreign driven phenomenon. Using monthly data on CPI in Croatia from January 1997 up to November 2015, ARIMA (0,1,1) x (0,1,1)12 model is fitted as the one describing CPI behavior pattern and therefore reliable for CPI forecasting. Furthermore, to establish its volatility pattern several ARCH family models are tested and ARCH (1) model is found to be the best fitted one in explaining CPI volatility development in Croatia.