<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The analysis of the banking / financial business impact on economic growth is a topic present in the world economy for centuries. In recent years, this topic has gained on importance in international economic circles. Actuality of the aforementioned impact particularly sparked the global economic crisis. In the focus of this paper is the impact of the level and speed of the financial development, particularly banking, on the economic growth in Serbia. Within the overall financial development, the focus is primarily dedicated to the banking business, which is still highly dominant segment of the financial sector in Serbia. We have conducted an analysis of the most important elements that have marked recent years` banking impact on the economic growth in Serbia. Actual characteristics of the aforementioned impact are also presented. Possible predictions of the banking / financial business movement in the future, as well as its impact on economic growth are presented in the paper. The focus is on determination of the optimal banking business volume for achieving sustainable economic growth in Serbia. The analysis presented in the paper indicate that there is significant potential for moderate and balanced growth of the banking / financial business in the medium term, which could make a significant contribution to the achievement of sustainable economic growth in Serbia, while providing financial stability. However, for the realization of this important and demanding goal, it is necessary to meet a significant number of factors and creation of the adequate conditions at the micro and macro level, essential for achieving the above mentioned aim.</p></abstract>

The analysis of the banking / financial business impact on economic growth is a topic present in the world economy for centuries. In recent years, this topic has gained on importance in international economic circles. Actuality of the aforementioned impact particularly sparked the global economic crisis. In the focus of this paper is the impact of the level and speed of the financial development, particularly banking, on the economic growth in Serbia. Within the overall financial development, the focus is primarily dedicated to the banking business, which is still highly dominant segment of the financial sector in Serbia. We have conducted an analysis of the most important elements that have marked recent years` banking impact on the economic growth in Serbia. Actual characteristics of the aforementioned impact are also presented. Possible predictions of the banking / financial business movement in the future, as well as its impact on economic growth are presented in the paper. The focus is on determination of the optimal banking business volume for achieving sustainable economic growth in Serbia. The analysis presented in the paper indicate that there is significant potential for moderate and balanced growth of the banking / financial business in the medium term, which could make a significant contribution to the achievement of sustainable economic growth in Serbia, while providing financial stability. However, for the realization of this important and demanding goal, it is necessary to meet a significant number of factors and creation of the adequate conditions at the micro and macro level, essential for achieving the above mentioned aim.

Optimal Banking and Other Financial Business for the Economic Growth of Serbia

Belgrade banking academy - Faculty for banking, insurance & finance

Journal of Central Banking Theory and Practice

This article is distributed under the terms of the Creative Commons Attribution Non-Commercial License, which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

{"article-title":"Optimal Banking and Other Financial Business for the Economic Growth of Serbia"}

The analysis of the banking / financial business impact on economic growth is a topic present in the world economy for centuries. In recent years, this topic...

Optimal Banking and Other Financial Business for the Economic Growth of Serbia

Published Online: May 30, 2014

Page range: 61 - 83

Received: Feb 14, 2014

Accepted: Feb 26, 2014

DOI: https://doi.org/10.2478/jcbtp-2014-0011

Keywords
Banking Business, Financial Sector, Economic Growth, World Economic Crises

© Central Bank of Montenegro

This article is distributed under the terms of the Creative Commons Attribution Non-Commercial License, which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Optimal Banking and Other Financial Business for the Economic Growth of Serbia

Published Online: May 30, 2014

Page range: 61 - 83

Received: Feb 14, 2014

Accepted: Feb 26, 2014

DOI: https://doi.org/10.2478/jcbtp-2014-0011

KeywordsBanking Business, Financial Sector, Economic Growth, World Economic Crises

© Central Bank of Montenegro

This article is distributed under the terms of the Creative Commons Attribution Non-Commercial License, which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Keywords
Banking Business, Financial Sector, Economic Growth, World Economic Crises