Analysis of the dynamics of the capital adequacy of the bank sector in Serbia based on the LMAW-DNMA method

Abstract

The issue of capital adequacy analysis in the banking sector is very challenging, significant, continuously updated, and complex. Based on that, this paper analyzes the capital adequacy of the banking sector in Serbia based on the LMAW-DNMA method. According to the results of the LMAWDNMA method, the top five years in terms of capital adequacy of the banking sector in Serbia in the observed period 2008 - 2022 are in order: 2016, 2012, 2015, 2017, and 2013. This means, in other words, that in that year the banking sector in Serbia was more exposed to business risks. It is safe to say that recently the capital adequacy of the banking sector in Serbia has increased slightly.