<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Privatisation of the banking sector is an inseparable part of development strategies used by the countries in transition. The process of transition and building a financial and market-oriented system is a complex and long-term task which, in addition to a variety of legal arrangements, involves also several institutional options, such as the Central Bank of Bosnia and Herzegovina, Banking Agency of the Republic of Srpska and Banja Luka Stock Exchange of Securities. The transition process of the banking sector in the Republic of Srpska was not implemented by rehabilitation of existing domestic banks, but by opening the banking system for the entry of foreign, more efficient banks. The level of trust in the banking sector grew in parallel with the process of bank privatisation and the arrival of foreign banks. Throughout the previous period, all the banks in the Republic of Srpska recorded a significant increase in the amount of deposits and loans placed, which implies the growth of investment and economic activities, therefore indicating the increase of the Republic of Srpska’s GDP in general. These are positive trends that demonstrate a decrease in the current lagging behind the European Union.</p></abstract>

Privatisation of the banking sector is an inseparable part of development strategies used by the countries in transition. The process of transition and building a financial and market-oriented system is a complex and long-term task which, in addition to a variety of legal arrangements, involves also several institutional options, such as the Central Bank of Bosnia and Herzegovina, Banking Agency of the Republic of Srpska and Banja Luka Stock Exchange of Securities. The transition process of the banking sector in the Republic of Srpska was not implemented by rehabilitation of existing domestic banks, but by opening the banking system for the entry of foreign, more efficient banks. The level of trust in the banking sector grew in parallel with the process of bank privatisation and the arrival of foreign banks. Throughout the previous period, all the banks in the Republic of Srpska recorded a significant increase in the amount of deposits and loans placed, which implies the growth of investment and economic activities, therefore indicating the increase of the Republic of Srpska’s GDP in general. These are positive trends that demonstrate a decrease in the current lagging behind the European Union.

Banking Sector of the Republic of Serbian in Terms of Transition

NLB Razvojna banka a.d. Banja Luka, Bosnia and Herzegovina

Elektrokrajina a.d. Banja Luka, Bosnia and Herzegovina

M:tel a.d. Banja Luka, Bosnia and Herzegovina

ECONOMICS

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Banking Sector of the Republic of Serbian in Terms of Transition"}

Privatisation of the banking sector is an inseparable part of development strategies used by the countries in transition. The process of transition and...

Banking Sector of the Republic of Serbian in Terms of Transition

Published Online: Jul 15, 2016

Page range: 45 - 58

DOI: https://doi.org/10.1515/eoik-2015-0028

Keywords
banking sector, transition, restructuring, credit rating, banking standards

© 2016 Predrag Ćurić et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Banking Sector of the Republic of Serbian in Terms of Transition

Published Online: Jul 15, 2016

Page range: 45 - 58

DOI: https://doi.org/10.1515/eoik-2015-0028

Keywordsbanking sector, transition, restructuring, credit rating, banking standards

© 2016 Predrag Ćurić et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
banking sector, transition, restructuring, credit rating, banking standards