Bankarstvo (Jan 2018)
Transformation of the banking systems in the Western Balkans
Abstract
Thirty years ago, the banks worldwide were doing business only at the national level. The globalization process which started at that time caused the banks to launch their operations at the international level, as well. For the countries of the Western Balkans the transformation of their respective banking systems to a market economy during the 1990's and at the beginning of this century was a great change. The transformation process of state-owned banks itself was mostly conducted by sale of banks to foreign investors. The above-mentioned process brought a host of advantages, such as an improvement of competition and the introduction of new technologies in those countries. The financial crisis that hit the Western Balkans in 2008 exerted an influence on banking operations in these countries. The post-crisis period additionally highlighted the need to harmonize the banking regulation in Europe, with the Single Supervisory Mechanism, which started functioning in 2014, being the initial step towards the formation of the European Banking Union, and the Basel III Accord towards regulating the operations of European banks.
