Значај спровођења Базелских стандарда у банкарском сектору Републике Србије
The importance of implementing Basel standards in the banking sector of the Republic of Serbia

Summary/Abstract: In the modern business world, the banking sector is of great importance because banks have a significant place in the financial mechanism of each economy. The place and role of banks require that their business is kept under constant monitoring. Since many banks operate globally, it is necessary to have a regulator at the international level. This is exactly the Basel Committee that defines the rules and gives guidelines which banks have to adhere to in their business. These guidelines and rules are embodied as the Basel Agreements I, II and III, and they complement each other. The paper explains the purpose, goals, structure, advantages, disadvantages and implementation of the Basel standards, from Basel I to Basel III. The application of Basel standards should make banking operations safer, with banks becoming more resilient to negative changes. Each of these standards must be implemented in the country's banking system if that country wants a stable and strong financial system resistant to stress and crises. Any failure to comply with the given rules and guidelines by banks can easily turn into a crisis. The global financial crisis, partly promoted by inadequate regulations, has provoked a further development of the Basel standards. Basel III, as the latest standard that has been adopted, has provided a good framework for the long-term success, survival and security of the banking sector's operations, and provides banks with a good basis for coping with unforeseeable events in the future. How long the new standard will succeed in the set goals remains to be seen. The aim of this paper was to familiarize with the Basel standards I, II and III, and to observe their implementation and application in the Republic of Serbia and the Republic of Croatia. In this paper were used: the method of analysis and synthesis, the method of induction and deduction, the historical method and statistical mathematical method.

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