DOES THE OLIGOPOLISTIC POSITION OF BANKS AFFECT THE PERFORMANCE OF THE BANKING SECTOR IN THE FEDERATION OF BOSNIA AND HERZEGOVINA?

The level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while on the other hand there has been an increased concentration of some larger banks in the system.The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model (FE model as well as GLS model). Both models were suitable for obtaining results via the Hausman test. The results of the research showed that the strongest (positive impact) on the first dependent variable, i.e., on return on assets (ROA), was achieved by the following independent variable: foreign-owned banks (FB). On the other hand, the strongest negative impact was recorded by the following independent variables: the size of the bank (BS) as well as the market concentration index for loans (HHI_loans). The strongest (positive impact) on the second dependent variable, i.e., return on equity (ROE), was achieved by the following independent variables: growth rate of total loans (GRTL) as well as the variable related to foreign-owned banks (FB). On the other hand, the strongest negative impact was recorded by the following independent variables: market concentration index for loans (HHI_loans) and bank size (BS). The third independent variable, i.e., net interest margin (NIM), had the strongest positive impact on the following independent variables: foreign-owned banks (FB) and credit growth rate (GRTL). On the other hand, the strongest negative impact was recorded by the following independent variables: concentrations for credit placements (HHI) and bank size (BS)

INTERDEPENDENCE BETWEEN RETURN AND RISK OF BANKS IN THE REPUBLIC OF SERBIA

In the last two years, the profitability of the banking sector of Serbia has indicated the occasional tendency to recovery. Viewed over the long term, profitability of the banking sector is primarily a function of an increase in lending activities with increased control in the field of credit risk because the credit risk is an essential problem of the banking sector in the Republic of Serbia, the region and individual EU countries. Unlike credit risk, liquidity risk is very insignificant. In this paper, through an approach that has been developed by Alberts, we will explore the correlation between return and risk for a larger group of banks in the Republic of Serbia. Therefore, the main objective of the paper is to determine whether factors such as the size of the bank, i.e. business operations, lending activities, the competitive environment and the style of management of the bank have an impact on the trade-off between return and ris

Possibility of Applying Regional Diversification in Capital Markets of Bosnia and Herzegovina and Republic of Serbia

Generally, risk is an uncertainty associated with future outcomes or events. In economic terms, risk is an expected deviation from the planned return of real, financial and intangible assets, of loss or cash flows associated with the uncertain event. The most famous way of reducing the overall risk is diversification of assets. Thus, diversification is a process of investment in a number of unrelated or partially related assets or activities in order to achieve stable business operation, and it shows that portfolios are poor to the extent that they should be avoided in order to increase yields and reduce risk. The portfolio diversification works because prices of different shares do not move in the entirely same direction. Statisticians generally mean the same thing when they say that share price changes are nothing less than perfectly correlated. The main objective of this paper is to discuss the impact of the global financial crisis on the movement tendency of the stock exchange index in the Western Balkans, developed countries and individual EU member states, and determine the feasibility of implementing regional diversification in order to further reduce risk and establish the portfolio of share with the lowest coefficients of correlation

POETIC SIDE OF A TRAVELOGUE THROUGH THE „ACCORD OF DIFFERENT WORLDS“

The subject dealt with in this work is non-hegemonic discourse which, in the spectre of philological interests, denounces the phenomena of hierarchialisation and dehierarchialisation linked to the problem of capturing the concept of the function a border has while being disseminated through literary theory and practice throughout travelogue as a literary form. By enquiring about cultural heritage applied in literature from Odyssey’s travels and challenges, this research has attempted to emphatically “listen poetically” to all aspects of human existence subjected by some to the border line of such worlds. Thus I here write about an exemplary travelogue which uses conceptual mechanism of its text based on the movement disputing then a conventional usage of literary language, which is today recognized as a form of violence as old as the very western history itself is. For that purpose, the work has incorporated analytical viewing of novelistic, essayistic and travelogue like literary heritage using travelogue essays Majka voda by Tvrtko Kulenovic, the most famous Bosnian-Herzegovinian writer and essayist. It is a travelogue of great significance taking us from “postmodern Odyssey” to its specific “ideology of water” and “religion of seas”. The ephemeral border between a body travelling to a body of travelling in his travelogue Majka voda takes us to the point of merging of two cultural circles. Poetic dimension may be inferred from Kulenovic’s suggestions: “Indeed, is there any shame in the fact that it is more intelligent to sail rather than row (...) That artistic skill is obtained more easily through the “eastern” relaxed surrender then through the “western” intent and concentration (attempt to forcibly control mind equals the attempt to even out the waves of the sea). Who hits the target, misses all? (...) We must be capable of changing our shape as water does. (...) In the beginning there was no word, but water. At least it is said so in the Book of Genesis: the holy spirit of God soared above the waters.” (Kulenovic: Majka voda

IS IT POSSIBLE TO IMPROVE BANK PERFORMANCE: EVIDENCE FROM BANKS IN BOSNIA AND HERZEGOVINA?

This research was conducted to identify variables that affect the efficiency of banks in Bosnia and Herzegovina. The required data were collected from 30 respondents (banks directors and CEOs) and a targeted set of 20 questions. For the purposes of data analysis, the statistical technique of factor analysis was used with the help of principal components. In the process of implementing this technique, the general applicability of the model and each variable was tested in order to identify key indicators that affect the efficiency of bank operations. Therefore, the main objective of this research is to identify the factors that most affect the efficiency of banks in Bosnia and Herzegovina. The results of the research showed that the value of the Kaiser-Meyer-Olkin (KMO) is greater than 0.50, which certainly confirms the application of factor analysis, that is, the significance of certain variables on the efficiency and effectiveness of banks in Bosnia and Herzegovina. Also, the factor rotation matrix indicates that the following variables have the greatest impact on the efficiency and effectiveness of banks operations: the bank provides fast service (q8), the banks communication with clients is good (q9), to meet when granting loans (q19), banks provide different types of loans (q14) and banks offer moderate interest rates on credit placements (q15)

ANALYSIS OF SYSTEMIC LIQUIDITY RISK FOR THE BANKING SECTOR IN BOSNIA AND HERZEGOVINA (BH)

The purpose of this paper is to relate the Danish concept of the “Balance Principle” to test the hypotheses of systemic liquidity risk in the banking sector. In the paper, the major econometric method is to gauge the general applicability of theories of liquidity and to test the applicable validity of Bosnia and Herzegovina (BH). A prime example for this study is taken from the first quarter of 2004 to the second quarter of 2014. Our intention here is to consider the identification of macroeconomic parameters that positively affect the growth of the banking sector. The parameter liquidity, i.e. liquid assets / total assets will be observed as a dependent variable, and nonperforming loans / total loans, average profitability on equity capital, non-interest expenses / total revenue, the average required reserve, total loans, the money supply in the wider sense, net capital / risk weighted assets and net performing assets / total assets will be used as independent variables. The purpose of the paper is to determine whether there is interdependence in the movement between the independent and dependent variables through a multiple linear regression

Lariat Ethers with Pendant Phenanthridine Units. Synthesis and Complexation of Na- and K-Picrate.

Lariat ethers 12 and 13 with appended phenanthridine fluorophoric units have been prepared as potential fluorescent chemosensor molecules for alkaline metal salts possessing aromatic anions. The starting 8-ethyloxycarbonylamino-6-methylphenanthridine (1) was converted via 2, 3, 6 and 7 to N-(2-tosylethyl)-derivatives 4 and 8 suitable for N-alkylations of diaza- and aza-18-crown-6. However, the alkylations failed, giving the 2-oxazolidinone derivative 5 formed by intramolecular cyclization of phenanthridine N-carbamate derivatives 4 and 8 in basic conditions. The phenanthridine derivative 10 having benzyl instead carbamate protection on 8-amino group successfully alkylated mono- and diaza-crown ethers, giving lariats 12 and 14. Subsequent removal of benzyl protection groups in acidic conditions gave lariats 13 and 15. Lariat 12 was found to form unique Na- and K-picrate complexes with the metal cation bound in the crown cavity and picrate anion intercalated between phenanthridine units

Change of the image of the city in process of using traffic infrastructure

Unique urban image cannot be experienced without moving within its structure. This paper deals with phenomenology considering changes of images of the city and influential factors closely related to it. Infrastructure gives basic structural scheme of every city, so its planning requires a high level proficiency. Some changes in these images can be observed during longer period of time. Sometimes it includes rapid changes of temporal layers, generated by building new urban elements on the exact same place where the old ones existed; while lighter change during the time passing is a regular occurrence. Creating completely new urban frames, caused by expanding the city, represents its dynamical variant. Topography is a significant factor, giving distinctive feature to the urbanity. This paper considers factors identified as generators of the change of the urban image, based on research so far. The structural elements are considered with the utmost attention. The importance of the city landmark, monumental complexes not possessing these features but having the importance in image of the city stability (as well as the inhabitants' memory) are crucial elements of identifying its picture. Another significant factor is related to individual personal experience. However, there are also certain factors of significance features, but not considered within this paper. One such factor is change in coloring, being the special topic itself. The purpose of this work is to indicate that urban planning requires special attention in order to keep continuous nature of the urban image for the city to preserve its visual identity