Internationalization of Banking in Serbia: A View of the Foreign Banks Motives for Entering the Market Cover Image
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Интернационализација банкарства Србије: поглед на мотиве страних банака при уласку на тржиште
Internationalization of Banking in Serbia: A View of the Foreign Banks Motives for Entering the Market

Author(s): Isidora Ljumović, Miroslav Jovanović
Subject(s): Politics / Political Sciences
Published by: Nova srpska politička misao
Keywords: Foreign direct investments; Investment motives; Banking sector transformation.

Summary/Abstract: This paper contributes to the discussion on the theories about international flow of capital into financial sector. Foreign direct investments in banking sector have significantly altered the landscape of the world financial market in the last several decades and Serbia is no exemption to this. The paper is examining the main motives behind foreign banks’ decision to enter Serbian market.In Serbia, as in other developing and transition countries, more important role is assigned to the motives related to the theories about profit growth and organization development, since it was found that banks with predominantly foreign capital achieved higher profit rates than in their home countries. In practice, these theories are supplemented by the theory about similarities of economichistoric heritage, while the other theories are not so much represented.

  • Issue Year: 20/2012
  • Issue No: 01+02
  • Page Range: 93-110
  • Page Count: 18
  • Language: Serbian