RESULTS OF APPLIED COLLECTION MANAGEMENT MODEL – SERBIAN CASE

The main aim of establishing collection management model (CMM) is to minimize non-performing loans (NPL) in credit portfolio. Furthermore, efficiently organized collection management has direct impact on profit of the bank, via the level of provisions. The subjects of the analysis are the results of applied CMM on corporate credit portfolio of Erste bank and Banca Intesa Serbia in the second quarter of 2010. Consequently, the focus of this paper will be the period within 2011 and 2013. Elements of implemented CMM in both banks are the same, i.e. Aim, Architecture and Instruments in both models are similar. However, Organization, Control and Monitoring within the model are different due to the different risk management policies and organization in accordance with business needs. The authors focus on the following indicators: NPL, CAR (Capital Adequacy Ratio), ROE (Return on Equity) and quality of corporate credit portfolio. Finally, these results will be compared with the performance of the whole group to which Serbian banks belong, i.e. Italy and Austria

RESULTS OF APPLIED COLLECTION MANAGEMENT MODEL – SERBIAN CASE

The main aim of establishing collection management model (CMM) is to minimize non-performing loans (NPL) in credit portfolio. Furthermore, efficiently organized collection management has direct impact on profit of the bank, via the level of provisions. The subjects of the analysis are the results of applied CMM on corporate credit portfolio of Erste bank and Banca Intesa Serbia in the second quarter of 2010. Consequently, the focus of this paper will be the period within 2011 and 2013. Elements of implemented CMM in both banks are the same, i.e. Aim, Architecture and Instruments in both models are similar. However, Organization, Control and Monitoring within the model are different due to the different risk management policies and organization in accordance with business needs. The authors focus on the following indicators: NPL, CAR (Capital Adequacy Ratio), ROE (Return on Equity) and quality of corporate credit portfolio. Finally, these results will be compared with the performance of the whole group to which Serbian banks belong, i.e. Italy and Austria

Koeficijent leveridža kao Bazelski standard u finansijskom upravljanju naftnih kompanija

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Merjenje koncentracije zavarovalnega sektorja

Background and purpose: The goal of the paper is to determine the level of concentration in the insurance sector in the following eight countries of South and Eastern Europe: Serbia, Croatia, Bosnia and Herzegovina, Montenegro, Former Yugoslav Republic of Macedonia, Romania, Bulgaria and Albania in the period from 2007 to 2012. Design/Methodology/Approach: In this context, the analysed indicators of concentration were the market share of the four leading financial institutions (CR4), the Herfindahl-Hirschman Index (HHI), the coefficient of entropy (E), the coefficient of relative entropy (RE) and Gini coefficient (G). Results: The study showed that the insurance sectors in the analysed countries are highly concentrated on average (according to CR4 indicator), medium concentrated (according to HHI) with high levels of inequality of distribution of market shares between individual participants (in terms of G coefficient), and in the zone of relative uniformity and equality of business entities (according to RE coefficient). The research results point out that the existence of different levels of correlation between the analysed indicators of concentration in the insurance sector, which confirms the conclusion that, in order to obtain relevant and quality conclusions about the level of concentration, it is necessary to review and analyse several indicators of concentration integrally. Conclusion: In all observed indicators of concentration in relation with the density level GDP pc move in the zone of very low value, which on the one hand points to the fact that the analysed countries at a relatively similar level of development have significantly different levels of concentration, but also on the fact that some countries although at different levels of development, have similar levels of concentration.Namen: Namen prispevka je bil ugotoviti stopnjo koncentracije v zavarovalnem sektorju na osnovi kazalnikov v naslednjih osmih državah južne in vzhodne Evrope (Srbija, Hrvaška, Bosna in Hercegovina, Črna gora, Nekdanja jugoslovanska republika Makedonija, Romunija, Bolgarija in Albanija) v obdobju od leta 2007 do leta 2012. Metodologija: V tem kontekstu so bili analizirani kazalniki koncentracije: tržni delež štirih vodilnih finančnih insti­tucij (CR4), indeks Herfindahl-Hirschman (HHI), koeficient entropije (E), koeficient relativne entropije (RE) in Gini koeficient (G). Kazalniki koncentracije so zgrajeni z uporabo ustreznih meril za razvoj zavarovalnih sektorjev (sk­upne zaslužene premije, premije ne premoženjske premije in skupne življenjske premije). Cilj analize podatkov je bil določiti raven vsakega indikatorja koncentracije v zavarovalnem sektorju v analiziranih državah in izračunati njihovo variabilnost v obdobju 2007-2012. Rezultati: Študija je pokazala, da so zavarovalniški sektorji v analiziranih državah v povprečju visoko koncentrirani (po kazalcu CR4), srednje koncentrirani (po HHI) z visokimi ravnmi neenakosti razdelitve tržnih deležev med posa­meznimi udeleženci (glede na koeficient G) in v območju relativne enotnosti in enakosti poslovnih subjektov (glede na RE koeficient). Rezultati raziskav kažejo, da obstoj različnih ravni korelacije med analiziranimi kazalniki koncentracije v zavarovalnem sektorju potrjuje sklep, da je za pridobitev ustreznih in kakovostnih sklepov o ravni koncentracije treba pregledati in integralno analizirati več indikatorjev koncentracije. Poleg tega so raziskave pokazale, da imajo države s sorazmerno podobnim nivojem razvoja (merjene z ravnjo bruto domačega proizvoda na prebivalca) bistve­no drugačne ravni koncentracije, medtem ko imajo nekatere države na različnih ravneh razvoja sorazmerno podobne ravni koncentracije, zaradi česar je težko govoriti o modelu koncentracije, ki bi bil značilen za ustrezno raven razvoja. Zaključek: V vseh opazovanih kazalnikih koncentracije glede na intenzivnost ravni BDP-ja, se pc gibljejo v območju zelo nizke vrednosti, kar na eni strani kaže na dejstvo, da imajo analizirane države pri sorazmerno podobni ravni razvoja, bistveno drugačne ravni koncentracije, pa tudi na dejstvo, da imajo nekatere države, čeprav na različnih ravneh razvoja podobne ravni koncentracije. Prihodnje raziskave bodo zajemale daljše obdobje do konca leta 2016, da bi ugotovili, ali bi se lahko v prihodnosti uporabljale enake ugotovitve ali se bodo na zavarovalnem trgu pojavili konkurenti iz drugih industrij, ki bi znatno spremenili sliko koncentracije ali kakovost ter prefinjenost zavarovalnih produktov

Review on importance of energy efficiency in hospitality

Taking into consideration that lately tourism has become one of the most significant economic activities, and hospitality as its main key part there is a need to observe constant market trend changes in order to achieve business improvements for hoteliers. Modern technologies in hospitality influence on cost reduction, increase of profit and competitiveness, and finally on enhancing guests' satisfaction. The usage of modern technologies in rational use of energy is of strategic importance for every hotel company due to reduction of costs, strengthens of competitiveness, increases of productivity, and on the other side, becomes a strategic tool which influences on business efficiency improvement. Therefore, there is a natural need and feeling of those who are stakeholders of tourism and hospitality to inform themselves about new technologies. The aim of this article is to provide insight into the latest trends, necessities and current issues in the field of for rational use of energy in all areas of hotel operations, which will result in the creation of high-quality services and provide full customer satisfaction

The Risk Management Functions in the Conditions of Globalization: Case Study of the Republic of Serbia

Globalization, which represents an important transmission mechanism of the crisis, has led to the necessity for controlling various risks of business, setting a new line of management in companies, regardless of the main business activity they are engaged in. The economic crisis in general, and especially the global financial crises (2007 and the present one) led to bankruptcy, and thus to loss of funds of many businesses and individuals. Therefore, it was necessary, on the one hand, to ensure confidence in the financial system and to maintain its stability. On the other hand, the development of corporate governance and separation of functions of ownership and management insisted on the creation of functions that directly report to the owners of capital, such as risk management and internal audit. The value of this paper is in emphasizing the new management function and raising awareness of the scientific public and businesses about the need for introduction of risk management functions in order to facilitate effective management of enterprises, although the survey (2012-2015) has shown that the existence of legal obligations, in this regard penal policy, is the only thing that effectively establishes and promotes this area

Nexus between sustainability and financial performance in the Serbian banking sector

Research Question: The paper investigates various ESG (Environmental, Social and Governance) related practices within the leading European banking groups (BGs) present in Serbian banking sector (SBS), including their financial performances. Motivation: The goal of the research was to explore approach habits to sustainable business between the leading European BGs present in the SBS. It should have in mind that SBS are in compliance with their headquarter/major shareholder. The rising global worry about ESG issues and its overall impact forces banking business model to use holistic approach, including the plug-in of sustainability and responsible behaviours. The paper draws on sustainable banking surveys of Aracil et al. (2021) and Stefanovic et al. (2021) in Business-Case domain, applying them on SBS with introduction of 3 comparable sustainable indicators (environmental loans, reduction of tCO2, community investments). It is the first study which takes in respect ESG elements of principal BGs in SBS, with the comprehensive analysis of subject’s legislative framework. Idea: The core idea of the paper was to empirically investigate the sustainable practice in SBS, based on different banks’ reports and publications, including disclosed ESG indicators. E-loans (EL) and profitability indicators were examined individually as dependent variables since other ESG and financial (solvency, financial stability and efficiency) variables served as independent ones. Data: Analysis was conducted using data of 4 European active BGs on SBS, in the period of 2015-2021, due to fact that there was the lack of quantitative metrics and non-uniform reporting practice. Tools: Statistical analysis (descriptive statistics, correlation, regression test utilizing ANOVA), were used to draw conclusions about the relationship variables, particularly correlation between ESG variables and profitability ratios. Findings: The study showed for analyzed BGs that: (1) they had unique ESG practice, based on global standards and EBA (European Banking Authority) regulation; (2) they had good credit risk management including E-risks in practice; (3) sustainability had significant inter-connectedness among ESG constituents, as well as with some of the financial metrics; (4) statistical significance of ESG metrics for EL; however similar findings are missing when it comes to association between financial performance (in terms of profitability) and ESG practice. Contribution: The paper introduces and expands existing research related to sustainable banking on SBS for further education of all stakeholders

The significance of domestic financing for economic growth in the South East European countries

In the South East Europe countries, bank loans are common and the most important form of financing, due to still underdeveloped financial market. The banks in these countries gained a considerable amount of foreign funds and play a prominent role in the growth of local economy. Given that banks grant loans based on investments of foreign capital and domestic deposits, the aim of this paper is to determine the importance of domestic sources of financing for the economic growth in the period after the reduction of foreign investments. The survey was conducted on a sample of eight selected countries of South East Europe (Western Balkans along with three countries that became members of the European Union during 2007­2012 - Bulgaria, Croatia and Romania - SEE-8). The panel data model was applied, where the GDP growth rate was taken as the dependent variable, while the analyzed independent variables were growth rates of the following parameters: assets, loan capacity, the participation of loans in GDP, loan capacity of the population, deposit capacity, deposit of the population, participation of household deposits in total deposit liabilities. The research results indicate that the growth rate of assets, the growth rate of household deposits and the growth rate of retail deposits have a positive impact on economic growth, while the share of loans in GDP, the growth rate of loans to households and the growth rate of deposit capacity have a negative impact on economic growth in SEE-8