Uticaj globalne finansijske krize na performanse bankarskog sektora Srbije
The Impact Of The Global Financial Crisis On The Performances Of The Serbian Banking Sector

Summary/Abstract: The global financial crisis has been transmitted to the banking sektor in Serbia through the exchange rate depreciation, reducing the quality of banks’ loan portfolios. The exchange rate depreciation, along withthe existing high currency substitution in Serbia, has resulted in a respective increase of debt obligations which is equvalent to the level of depreciation. Faced with an increase of nominal debts, debtors did not have sufficient financial resources to fulfill their arranged obligations. Consequently, there was an increase of non-performing loans leading to the decline in bank profitability, as measured by the return on assets (ROA) and the return on equity (ROE). The aim of this research is to analyze the impact of financial crisis on the Serbian banks’ performances. In order to analyze the banks’ performances, the authors of this paper will apply the CAMELS model (Capital, Assets, Management quality, Earnings, Liquidity, Sensitivity to market risk) which is derived from the relevant balance sheet indicators. The paper is structured in three parts. The first part will focus on the theoretical and methodological determinants of the CAMELS approach to assessing banks’ performances. In the second part, the authors will provide the descriptive statistics of banks’ performances in the pre-crisis and crisis period: profitability, liquidity, assets quality and capital adequacy. In the third part, the authors will use the CAMELS analysis to assess the impact of the global financial crisis on the performances and the corporate health of the banking sector in Serbia. In the conclusion, the authors will elaborate on the research results.

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