In this paper, the subject of analysis is influence of certain macroeconomic and microeconomic variables on bank net interest margins in Bosnia and Herzegovina (BH) for the period from 2008 to 2013 through a multiple linear regression models. The level and dynamics of NIM indicate the efficiency of financial intermediation. The observed period is characterized by the reduction in net interest margins of banks over the previous decade, which was characterized by high GDP growth, bank loans and high-interest rates and high profitability. Therefore, this study examines the factors that affect the level of net interest margins in the domestic banking industry. The main objective of this paper is to determine whether there is interdependence in the movement between the independent and dependent variables through a multiple linear regression. The net interest margin will be observed as a dependent variable, and liquidity risk, operating costs, credit risk, the index of market concentration, funding risk, the growth rate of gross domestic product and consumer price index will be used as independent variables. Key words: net interest margin, efficiency of financial intermediation, interest rate spread, banks operating costs. Determinante neto kamatnih margina za banke u BiH Rezime: Predmet istraživanja u ovom radu je analiza uticaja pojedinih makro ekonomskih i mikroekonomskih varijabli na neto kamatne margine banaka uBosni i Hercegoviniza period od 2008 do 2013., uz primenu modela višestruke linearne regresije. Nivo i dinamika neto kamatnih margina ukazuju na efikasnost u finansijskom posredovanju. Posmatrani period karakteriše smanje nje neto kamatnih margina banaka u odnosu na raniji period koji je bio karakterističan po visokom rastu bruto domaćeg proizvoda, bankarskih kredita, kamatnih stopa i visoke profitabilnosti. Stoga, ovo istraživanje ispituje faktore koji utiču na nivo neto kamatnih margina u domaćem bankarskom sektoru. Osnovni cilj ovog istraživanja je da se utvrdi da li postoji međuzavisnost u kretanju između nezavisnih I zavisnih varijabli kroz primenu modela višestruke linearne regresije. U ovom istraživanju neto kamatna margina će se posmatrati kao zavisna varijabla, a rizik likvidnosti, operativni troškovi, kreditni rizik, indeks tržišne koncentracije, rizik finansiranja, stopa rasta BDP-.a iindeks potrošačkih cijena će se posmatrati kao nezavisne varijable.Ključne reči: neto kamatne margine, efikasno finansijsko posredovanje, kamatni spread, operativni troškovi banaka.

Non-financial sector in B&H and the companies due to lack of its own funds for sustainable growth rely on financing its operations through bank loans. The dominant share of lending to banks in B&H is

A P S T R A K T U ovom radu objašnjavamo pojam finansijske pismenosti i njegov značaj za građane, finansijske institucije i društvo u cjelini. Nizak nivo finansijske pismenosti i nedovoljno uređen institucionalni okvir može kreirati mnoge probleme za pojedince i finanasijske institucije u cjelini. U Bosni i Hercegovini (B&H) je veoma mali broj ljudi finansijski pismen. Ne postoji nikakva strategija podizanja nivoa finansijske pismenosti. Bosna i Hercegovina je zemlja koja u odnosu na svoje okruženje najmanje čini da bi podigla nivo finansijske svijesti i pismenosti građana. Ukoliko nije u mogućnosti da usvoji nacionalnu strategiju podizanja nivoa finansijske pismenosti u B&H bi bilo veoma potrebno u većoj mjeri koristiti postojeće institucionalne kapacitete za podizanje nivoa pismenosti svih struktura i grupa stanovništva.

The article is on the system of the safety network of the financial sector in Bosnia and Herzegovina (BH) and potential causes of possible financial instability. The network of protection of financial institutions in BH is to a certain extent incomplete but a high level of regulatory and supervisory activities has been present so far, which effects the expressed stability of financial institutions. Potential risks and the vulnerability of the financial system arise from a range of features which are characteristic of the local financial institutions, their activities, the condition of the BH economy, and macroeconomic stability and flows of goods and capital between the country and foreign countries. The sector of financial institutions has been privatized and it is in foreign ownership. Foreign exposure of domestic economy and financial markets is limited to only a small number of countries (Austria, Germany). There are pressures in respect of the increased rates of return on bank capital and there is a very high dynamic of credit growth. Possible unfavourable scenarios could bring about problems in the banking sector, which is shown by stress tests. The deterioration of the macroeconomic imbalance could also be a significant cause of serious problems in the local financial sector. There are no certain indicators that this could happen in the near future and influence the appearance of a financial crisis; however, such a situation cannot be ruled out

In the research, we started from the fact that consumer loans are the most common type of credits offered by the commercial banking sector to the public of Bosnia and Herzegovina (B&H). The initial goal of the research was to look at the current structure of loans taken by citizens from banks (loan size, loan maturity, use goal, etc.) and to look at the structure of credit users in terms of their educational, income and age status. We started from the assumption that citizens or households use bank consumer credits predominantly to finance current consumption and compensate for insufficient current income to finance basic living needs. We made such assumptions based on the fact of low general income per capita, low average wages and high unemployment rates in B&H. The research is based on a comprehensive survey that we conducted on a large number of participants, users of bank consumer loans. We concluded: relatively most of the credit beneficiaries are from the category of educated and highly educated citizens and the relatively largest number of beneficiaries are those with low-income status and young people. The loans used are mostly non-purpose cash credits. Longer loan maturities are reserved mainly for middle aged and older people with higher income status. Long-term loans were mostly used to finance the purchase and construction of apartments and houses. Average loan amounts per user are relatively low, which is to be expected given their income position. The motives, life requirements and expectations of the borrower usually move within a modest radius of providing basic living needs therefore, loans are mostly aimed at financing current consumption. For some users, there is a noticeable preference for higher consumption that goes beyond the actual borrowing potential of these households.