Globalization and its Impact on the Financial Performance of Banks in Serbia

摘要

The purpose of this paper is that it should point to the impact of the contemporary globalization and its elements to financial performance of the banking sector. Key factors of globalization, such as deregulation and financial liberalization have led to the unleashing of economies around the world, including Serbia. In such an environment the temporary economic growth is a result of inflow of foreign capital, which carries a speculative character, with the aim of rapid reproduction and then withdrawing investors. In such an environment, supported by liberalization and deregulation, banks managed a quick buck, approve more loans. Inadequate credit score helped the escalation of the collapse of the financial sector, where is the domino effect spilled over to the real sector. This mechanism, communicating vessels, destroys itself. In terms of solving new situations, it is better control of financial institutions (banks).