The real sector Serbian economy process of privatization has not been completed after 18 years of implementation. Nevertheless, the privatization (and restructuring) of socially owned enterprises is one of the key requirements for enhancing business performances of the real sector and entire economy. Although relatively satisfactory results of key macro economic trends in Serbia have been realized in previous period, it could not be stated that all desired and expected effects have been efficiently realized up to now. As a result, according to the World Economic Forum Report, the Serbian economy is at 91 place among 130 countries on the level of competitiveness. Partly, it’s a result of unsatisfactory trends in the field of real sector privatization and restructuring. On the other side, during transition period after the year 2000, the banking sector in Serbia has been transformed and revitalized. The main weaknesses of banking system in the period before 2000. (illiquidity and general insolvency, the lack of confidence towards financial institutions, the lack of stable deposit bank, etc.) have been overcome. In the last few years most of domestic commercial banks are privatized by foreign ones, and consequently the banking sector became profitable, liquid and highly capitalized. The trends, resulting from the increased competitiveness and efficiency of banking sector, are confirming the benefits of banking sector restructuring and have positive impact on local economy
