CREDIT ACTIVITIES OF COMMERCIAL BANKS IN SERBIA: CAUSES AND CONSEQUENCES
CREDIT ACTIVITIES OF COMMERCIAL BANKS IN SERBIA: CAUSES AND CONSEQUENCES

Summary/Abstract: Lending activity in Central and Eastern Europe countries has been strongly supported by international banks and financial organizations, and most respected European banks whose subsidiaries operate in the banking area of Serbia in the period of strong credit expansion or before 2008. After the beginning of the global economic crisis, whose first signs were observed last quarter of 2008, lending activity of the banking sector recorded a downward trend. In terms of systemic and specific risks which the banks have been faced with intensely, with the help of responsible management levels within the banks, Parent banks, and the active role of central banks and international lending bodies, the lending activity has not stopped. Under the auspices of the so-called Vienna Initiative, commercial banks in Serbia managed to maintain their lending activity, changing their business models and management techniques applied to the balance position. Conditions that the largest European banks are facing and problems arising from the request for the reduction of borrowing because of requirements relating to the capital increase, international standards of Basel III, a shift in the form of short-term horizon of lending at the expense of long-term loans, there is a questionarising as to what implications these changes might have oncommercial banks operating in Central and Eastern Europe, and thus Serbia.

• Details
• Contents