The analysis of the key indicators of the Republic of Serbia banking sector

Ercegovac, Dajana; Vlaović-Begović, Sanja; Jovin, Slobodanka

doi:10.5937/aneksub1941081e

Cited by 6 publications

(4 citation statements)

References 3 publications

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“…The domestic financial sector has gone through huge and turbulent changes in the last twenty years. The entry of foreign capital, acquisitions and stronger prudential control induced necessary transformation in order to establish a more efficient and profitable financial sector (Ercegovac, Vlaović Begović, & Jovin, 2019). The mentioned research concludes that there is a trend of concentration of the total profits and losses in the domestic banking sector, significant capital adequacy, substantial liquidity with the dominant share of foreign banks in total assets, equity, and realized profits of the banking sector.…”

Section: Brief Literature Reviewmentioning

confidence: 96%

The impact of macroeconomic indicators on the business performance of financial institutions in the Republic of Serbia: Panel data analysis

Račić¹,

Ercegovac²,

Milić³

2021

Int J Econ Practice & Policy

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This paper aims to estimate the impact of macroeconomic indicators (gross domestic product-GDP, inflation rate and industrial production index) on liquidity, profitability and solvency of financial institutions in the Republic of Serbia. The research is based on applying a dynamic GMM panel model, while the results of the application of static panel models were analyzed as the control results. The research results support the assumption that the growth of GDP and inflation rates affects the increase of financial institutions' profitability. Also, the estimation results implicate that the growth of GDP and the inflation rate is linked with the reduction of financial institutions' liquidity, while the growth of industrial production rate affects its increase. Finally, the results of the study indicate that GDP growth has an influence on the rise of financial sector solvency. This comparative analysis using panel data models is relevant to a broad range of researchers and policymakers interested in macroeconomic relations and the financial sector.

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Section: Brief Literature Reviewmentioning

confidence: 96%

The impact of macroeconomic indicators on the business performance of financial institutions in the Republic of Serbia: Panel data analysis

Račić¹,

Ercegovac²,

Milić³

2021

Int J Econ Practice & Policy

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“…In order to increase banks' resilience to losses, as well as to reduce excessively or underestimated exposure and to limit the distribution of capital, capital buffers have been introduced (Abbas et al, 2019). The level of capital requirements influences financial soundness indicators (Ercegovac et al, 2019;Vesić et al, 2019). In good times, banks, in accordance with the recommendation of the Basel Committee on Banking Supervision (BCBS, 2010), create capital reserves that will then be used when the systemic risk materializes (Ayuso et al, 2002;Seidler & Gersl, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of capital buffers in Serbia

Martin¹

2021

Anali Ekon fak Subotica

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The aim of this paper is to analyse all capital buffers that are currently applied in Serbia. Regulation that transposes Basel III regulatory standards in Serbia was adopted in December 2016. These buffers increase the resilience of banks to losses, reduce excessive or underestimated exposures and restrict the distribution of capital. An assessment of the long-term trend of the credit-to-GDP ratio is based on using a one-sided Hodrick-Prescott filter and the selected value of the parameter l equals 400000. Also, this paper used the following methods of research: inductive and deductive methods, methods of analysis and synthesis, classification method and the method of comparison. Analysis has shown that capital buffers that are currently applied in Serbia are fully harmonized with European Union regulations and international best practices.

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“…Accordingly, banks play an extremely important role in this process because economic growth requires an efficient banking sector that would provide macroeconomic stability (Muhović, Subić, 2019). The authors (Ercegovac et al, 2019) state that the banking sector is the most significant segment of the financial system of any modern and developed economy. As such, it enables the entire economic system to function undisturbed, contributing to sustainable economic growth and development.…”

Section: Introductionmentioning

confidence: 99%

A test of International Fisher Effect: Researching from Serbia and the European Union

Joksimović¹,

Joksimović²,

Grujić-Vučkovski³

2020

Ekonomika

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The aim of this paper is to explore the International Fisher Effect (IFE) between Serbia and European Union (EU) in period between 2004 and 2015. The authors in this paper explore the IFE by applying regression analysis. They were used historical annual data for exchange rates, real interest rate and inflation, in this research. Like a home country and foreign country the authors were used each of these areas (Serbia and EU) like interchangeably and track the trail of the effect. Explore was based on the time series of observed annual data in period between 2004 and 2015. The authors were used the data of authorized central banks from databases: the World Bank, the National Bank of Serbia and the European Central Bank. Regression analysis was performed using a software package SPSS 20. The contribution of this paper is reflected in the obtained results.The results show that a 1% increase in the nominal interest rate differential, on average, lead to approximately a 0.3% offsetting change in the exchange rate in both cases (Serbiahome EU-foreign and EU-home Serbia-foreign).The coefficients of determination R 2 are very low, also in both cases. Only 3.3% of the annual changes in the RSD/EUR exchange rate and 4.2% of the annual changes in the EUR/RSD exchange rate can be explained by the nominal interest differentials. Therefore, about 96% of the annual changes in the exchange rates depend on other factors.

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The analysis of the key indicators of the Republic of Serbia banking sector

Cited by 6 publications

References 3 publications

The impact of macroeconomic indicators on the business performance of financial institutions in the Republic of Serbia: Panel data analysis

The impact of macroeconomic indicators on the business performance of financial institutions in the Republic of Serbia: Panel data analysis

Analysis of capital buffers in Serbia

A test of International Fisher Effect: Researching from Serbia and the European Union

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