IDENTIFIKACIJA OPERATIVNIH RIZIKA BANKE UTEMELJENA NA NJIHOVOJ TAKSONOMIJI

Proces upravljanja OR banke podrazumijeva identifikaciju, evaluaciju, kontrolu, monitoring i formiranje adekvatnog kapitala za pokriće izloženosti OR na nivou banke kao cjeline. Identifikacija je krucijalna faza u tom procesu. Što su OR bolje identifikovani time je banka spremnija odgovoriti i nositi se s pojavom OR, tj. djelovati na njih proaktivno umjesto reaktivn

Changing financial system architecture under the influence of the fintech market: A literature review

In the past seven decades, especially since the Global Financial Crisis, the financial system’s architecture has changed significantly around the world. New financial market entrants, such as fintech start-up companies, offer financial products and services more efficiently than established financial institutions (especially banks and insurance companies), bypassing the regulatory requirements established intermediaries must comply with. Despite the heterogeneity in the fintech concept, we use this term to consider innovations in financial products and services based on emerging information and communication technologies (i.e., information technology and mobile connectivity) as solutions that are changing the financial structure worldwide. Although the share of new participants in the financial system is rather small compared to the incumbents, fintech innovations are continuously advancing (e.g., crowdfunding, marketplace lending, cryptocurrencies, copy trading, robo-advice, insurtech, etc.), and their share is growing fast. This paper provides an overview of the fintech market and its impact (actual and potential) on the financial system’s architecture based on a comprehensive review of the theoretical and empirical literature

Impact of leadership style on bank profitability: Case study of a bank in Bosnia and Herzegovina

The goal of this paper is to demonstrate the extent to which the quality of the leader-follower relationship, expressed by the LMX coefficient, affects the bank profitability. Banks characterised by a high level of LMX possess a successful social atmosphere and interpersonal relationships, which is reflected in the emotional support and willingness to share resources, knowledge, and information between employees. Such a relationship between leaders and followers contributes to creating favourable social atmosphere, significantly affecting the overall performance of banks. Empirical research presented in this paper uses the data collected from a business network of a specifically selected Bank. The data was collected via a modified version of the LMX-7 questionnaire, focusing on each branch of a selected bank. Concrete indicators were analyzed (such as net profit margin, ROA, and ROE), which helped establish a link between profitability and the degree of leader-follower communication exchange (measured by LMX coefficient). The results reveal that the applied leadership style directly impacted on the profitability of a selected bank, indicating that this finding could be used as input for management systems of similar financial institutions as well as a catalyst for further research in this field

A RESEARCH ANALYSIS OF THE LEVEL OF EMPLOYEES’ SATISFACTION BY TRAINING PROGRAMS IN BOSNIA AND HERZEGOVINA BANKING SECTOR

Investment into people through education, professional training in accordance to bank’s needs, and work on “nurturing” the readiness to challenges and changes are all significant starting points for achieving bank competitiveness. Identifying the dominant forms of employee training and determining the level of employee satisfaction by the existing training programs, which is the basic goal of this paper, enable bank managers to obtain valid information on appropriate changes of certain training programs and development of employees. The paper presents the results of the empirical research conducted in a subject BiH bank, aimed at defining the methods of employee training that are characteristic of the banking sector and the level of employee satisfaction by training programs they attend. The research included 172 employees of the subject bank. The authors believe that the critical analysis of the employee training and development methods applied in the banking sector as well as the criteria for selecting the programs for the realization of these methods can lead to widening the scientific knowledge in the field of human resource management in banking and to creating specific recommendations for bank managers which they can/need apply in their practice in order to improve the entire business operations

Identifying explosive behavioral trace in the CNX Nifty Index: a quantum finance approach

The financial markets are found to be finite Hilbert space, inside which the stocks are displaying their wave-particle duality. The Reynolds number, an age old fluid mechanics theory, has been redefined in investment finance domain to identify possible explosive moments in the stock exchange. CNX Nifty Index, a known index on the National Stock Exchange of India Ltd., has been put to the test under this situation. The Reynolds number (its financial version) has been predicted, as well as connected with plausible behavioral rationale. While predicting, both econometric and machine-learning approaches have been put into use. The primary objective of this paper is to set up an efficient econophysics’ proxy for stock exchange explosion. The secondary objective of the paper is to predict the Reynolds number for the future. Last but not least, this paper aims to trace back the behavioral links as well

FINANCIAL CONTROLLING STATUS AND POTENTIAL IN MEDIUM-SIZED ENTERPRISES OF TUZLA CANTON, BOSNIA AND HERZEGOVINA

The paper focuses on financial controlling in the role of improving business performances of medium-sized enterprises in the Tuzla Canton,Bosnia and Herzegovina, active in manufacturing, trade, transport and storage, construction, etc. All the processes accompanying these activities are significantly faster and do not run in a classical way, which is why the management system nowadays requires that information requested within plan, analysis, and control run simultaneously. It is emphasized that financial controlling is important as it provides the necessary coordination and outgoing information for the management of a medium-sized enterprise. The authors also researched and identified unique common indicators used for determining and establishing financial controlling in medium-sized enterprises in the Tuzla Canton, analyzed the obtained results, and identified mutual dependence of financial controlling and performances of medium-sized enterprises. The conducted research points to the basic conclusion that the function (department) of financial controlling in modern organization of medium-sized enterprise is needed and has a positive effect. The authors therefore confirmed the hypothesis that financial controlling, if properly implemented in practice at the level of medium-sized enterprise, gives efficient results

The impact of performance analysis on the financial management and control at public universities in Bosnia and Herzegovina Federation

Organizations in today’s extremely competitive environment need to devote significant time, energy as well as human and financial resources to the measurement of their efficiency, in order to increase their profit, reduce costs, better plan their assets and manage their budgets, as well as to improve budget controls and risk assessment. Therefore, they need performance models, including the Balanced Scorecard. Primarily intended for profit organizations, the Balanced Scorecard is today used in the public sector, as well. This paper presents the research into the utilization of the Balanced Scorecard in the public sector, examining whether the performance of higher education institutions may be improved by the design and utilization of the Balanced Scorecard model

PERSPECTIVES OF BASEL III: EMPIRICAL EVIDENCE FROM BOSNIA AND HERZEGOVINA

The latest Basel Accord, which relies on the New Capital Accord (i.e. Basel II) and whose basic goals have been, from a normative standpoint, enhancing the banking sector’s ability to absorb the losses arising from economic distresses like the global financial crisis (2007-2009), improving risk management and governance, and strengthening the bank's transparency and disclosures, operationally emphasises the need to improve the quality and quantity of capital components, liquidity standards, and leverage ratio. The implementation of the Accord in developed economies started at the beginning of 2013 and the overall transition period from the Basel II framework should end by the year 2019. But as far as emerging economies are concerned, there are several issues on the road of implementation, such as necessary (technical) skills and expertise of bank staff as well as their supervisory institutions, sophisticated internal rating mechanisms and capacity, significant amount of new information and recordkeeping, etc. This paper discusses real and potential effects of Basel III in both developed and emerging economies. A special emphasis is given to the banking sector of Bosnia and Herzegovina