Analiza kvaliteta aktive bankarskog sektora u Srbiji
Analysis of the Assets Quality of the Banking Sector in Serbia

Summary/Abstract: Investigating the quality of banking sector assets is very challenging, continuouslyadapting, complex, and significant. The quality of assets significantly affects the overall performanceof the banking sector. Hence, it is necessary to manage the asset quality of the banking sector aseffectively as possible. Bearing that in mind, this paper analyzes the dynamics of asset quality inthe banking sector in Serbia based on the LMAW-DNMA method. According to the results of theLMAW-DNMA method, the best asset quality of the banking sector in Serbia was achieved in 2013and then in 2011, 2016, 2012, and 2014. The unfavorable quality of the assets of the banking sectorin Serbia in the period 2019-2021 was affected by the COVID-19 pandemic by causing a declinein economic and thus credit activities, and to a large extent prolonging the repayment of creditobligations. In 2022 and 2023, a slight improvement in the quality of banking sector assets in Serbiawas recorded. Therefore, it is necessary, among other things, to manage credit risks as efficiently aspossible and, consequently, to carry out an adequate distribution of available loans to the economy,sectors, and the population to achieve the target quality of assets of the banking sector in Serbia.

• Details
• Contents