Financial system development progress in Western Balkans
-
DOIhttp://dx.doi.org/10.21511/bbs.12(2).2017.01
-
Article InfoVolume 12 2017, Issue #2, pp. 7-19
- Cited by
- 1678 Views
-
535 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Financial system supports economic growth, while its regulatory framework provides stability for investors. Develo-ping countries with bank-oriented financial systems are not attractive to investors, so prolonged status quo leads to economic deterioration. This is particularly the case with some of the most underdeveloped areas in Europe: Western Balkans. It is essential the developing countries in this region consider steps towards financial liberalization, which will help open the borders for capital flows and attract new investments. The main goal of this paper is to review and present the available information related to the banking system development in Western Balkans in terms of ownership structure, capital adequacy, loan and asset performance, return on investment and liquidity. These indicators should provide a clearer picture of the current financial systems in Western Balkans economies and their development progress – useful for comparison with other developing regions and financial transformation and liberalization efforts.
- Keywords
-
JEL Classification (Paper profile tab)G18, G21, G28
-
References22
-
Tables1
-
Figures18
-
- Fig. 1. The ownership structure of banks in Albania
- Fig. 2. The ownership structure of banks in Bosnia and Herzegovina
- Fig. 3. The ownership structure of non-residents’ share capital
- Fig. 4. The Ownership structure of banks in Montenegro
- Fig. 5. The ownership structure of banks in Croatia
- Fig. 6. The ownership structure of banks in Macedonia
- Fig. 7. The ownership structure of banks in Serbia
- Fig. 8. Capital adequacy indicator of the banking sector of the Western Balkan countries
- Fig. 9. Non-performing loans to total loans contribution trend of the Western Balkan countries
- Fig. 10. Non-performing loans contribution to total loans of the Western Balkan countries
- Fig. 11. Non-performing assets to total assets contribution trend of the Western Balkan countries
- Fig. 12. Non-performing assets contribution to total assets of the Western Balkan countries
- Fig. 13. Return on average assets of the Western Balkan countries
- Fig. 14. The return on average assets of the Western Balkan countries
- Fig. 15. Comparison of indicators of return on average assets of the banking sector of Bosnia and Herzegovina and the banking sectors of other Western Balkans countries
- Fig. 16. Indicators of return on average equity of the Western Balkan countries
- Fig. 17. Liquid assets to total assets trend of the Western Balkan countries
- Fig. 18. Liquid assets to short-term financial obligations trend of the Western Balkan countries
-
- Table 1. The Ownership structure of the share capital of banks in Bosnia and Herzegovina
-
- Ashraf, D., Ramady, M., & Albinali, K. (2016). Financial fragility of banks, ownership structure and income diversification: Empirical evidence from the GCC region. Research in International Business and Finance, 38, 56-68.
- Bonaccorsi di Patti, E., & Hardy, D. C. (2005). Financial sector liberalization, bank privatization, and efficiency: Evidence from Pakistan. Journal of Banking & Finance, 29(8–9), 2381-2406.
- Bremus, F., & Buch, C. M. (2016). Granularity in banking and growth: Does financial openness matter? Journal of Banking & Finance.
- Celik, T., & Citak, L. (2016). Banking Competition, Financial Liberalization and Economic Growth: Evidence from Turkish Economy during the 1990-2014 Period. International Journal of Economics and Financial Issues, 6(4), 1750-1755.
- Central Bank of Bosnia and Herzegovina. (2005). Annual Report for 2004. Sarajevo.
- Central Bank of Bosnia and Herzegovina. (2006). Annual Report for 2005. Sarajevo.
- Ćirović, M. (2001). Bankarstvo. Beograd: Bridge Company.
- Dal Colle, A. (2016). The mechanics of commercial banking liberalization and growth. Journal of Banking & Finance.
- Garriga, A. C. (2016). Regulatory lags, liberalization, and vulnerability to banking crises. Regulation & Governance, n/a-n/a.
- Ghosh, J. (2005). The Economic and Social Effects of Financial Liberalization: A Primer for Developing Countries. DESA Working Paper No. 4, UN Department of Economic & Social Affairs.
- Gombola, M. J., Ho, A. Y.-F., & Huang, C.-C. (2016). The effect of leverage and liquidity on earnings and capital management: Evidence from U.S. commercial banks. International Review of Economics & Finance, 43, 35-58.
- Hamdaoui, M., Zouari, A., & Maktouf, S. (2016). The effect of financial liberalization on banking sector stability. International Review of Applied Economics, 30(5), 644-667. doi: 10.1080/02692171.2016.1165654
- Kapor, P. (2005). Bankarstvo sa osnovama bankarskog poslovanja i međunarodnim bankarstvom. Beograd: “Megatrend” univerzitet primenjenih nauka.
- Kapor, P. (2010). Bankarstvo sa međunarodnim bankarstvom. Beograd: “Megatrend”univerzitetprimenjenihnauka.
- Lin, K.-L., Doan, A. T., & Doong, S.-C. (2016). Changes in ownership structure and bank efficiency in Asian developing countries: The role of financial freedom. International Review of Economics & Finance, 43, 19-34.
- Živković, B. (2011). Komparativna analiza bankarskog sistema Srbije i zemalja Jugoistočne Evrope. Kvartalni monitor, 27, 62-72.
- Bank of Albania. (2013).
- Central bank of Montenegro. (2018).
- Global Trade Negotiations. (2015).
- National Bank of the Republic of Macedonia. (2013).
- The National Bank of Serbia. (2013).
- Hrvatska Narodna Banka. (2013).