NOVA ULOGA CENTRALNE BANKE U KONSOLIDACIJI BANKARSKOG SISTEMA
A NEW ROLE OF THE CENTRAL BANK IN CONSOLIDATIONOF BANKING SYSTEM

Summary/Abstract: The Central Bank is a specific financial institution that is often under the control and influence of big government. The main objective of the central bank is to keep a stable monetary policy and contributes to the achievement of economic goals of the state. However, the position of the central bank depends on its actual and institutional independence from the government representing the executive branch. The global financial crisis has shown that banking supervision is carried out superficially and consequently insufficient which resulted in the lack of preventive measures to eliminate and identify financial and macroeconomic risks. As a consequence of financial turbulence in the same way we were able to observe the rapid changes associated with monetary policy in the short term in most countries in the world. That is why the central bank finds itself with an increase of their obligations and receive the more important regulatory role in the area of monetary policy.

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