Capital adequacy ratio of the banking sector in Serbia
With the development of modern banking, exposure to different types of business risks is becoming greater. Timely identification and quantification of all types of risks, as well as adequate safeguards are becoming very relevant factor in the success of business in an increasingly complex economic c...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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University of Novi Sad - Faculty of Economics, Subotica
2014-01-01
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| Series: | Anali Ekonomskog fakulteta u Subotici |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2014/0350-21201431003Z.pdf |
| Summary: | With the development of modern banking, exposure to different types of business risks is becoming greater. Timely identification and quantification of all types of risks, as well as adequate safeguards are becoming very relevant factor in the success of business in an increasingly complex economic condition. Bank capital is a source of funds - growth of the bank, providing security to the bank in terms of risk, the protection of the interests of creditors, depositors, as well as creator of confidence in the bank and the entire banking sector. The aim of this paper is to emphase the importance and appropriateness of Basel principles of banking business, especially when it comes to maintenance of capital adequacy. The relevance of standards is manifested through the regulatory framework required to be raised to the level that is required to successfully overcome all obstacles in the banking business. The case study is an analysis of capital adequacy in the banking sector of Serbia, which is under the supervisory functions of the National Bank of Serbia. The movement of Pak is analyzed and commented parameters that affect it. The research results confirm that bank capital is the most stable part of the financial resources and policy banks. Providing a satisfactory level of capital and retaining a sufficient amount of capital to protect the interests of depositors, borrowers, employees, owners and citizens, is one of the biggest challenges that is posed in front of the bank. |
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| ISSN: | 0350-2120 2683-4162 |