Konvergentnost bankarskog sektora Republike Srbije u uslovima finansijske integracije

Abstract

The process of financial integration is at the center of interest for all economic entities. A higher level of financial integration contributes to the improvement of the performance of national economies by reducing capital costs and improving the allocation of financial resources. With the trend of globalization since the late 1980s, the process of financial integration has been taking place as a result of the removal of barriers to the movement of capital between countries. This paper qualitatively analyzes financial integration and financial integration indicators. In this context, special attention in the paper is devoted to the integration of the banking sector of the Republic of Serbia. The structure of the banking sector of the Republic of Serbia is examined, as well as the values of concentration and competition indicators - the Herfindahl-Hirschman Index and CR5. The data was collected during a ten-year period that spans from the aftermath of the global economic crisis and continues until the onset of the COVID-19 pandemic. Additionally, profitability indicators (ROA and ROE) in Western Balkan countries were observed from 2013 to 2020.