The Croatian Banking System
This paper provides an analysis of the stability of the Croatian banking sector. After the banking crisis of 1998, the Croatian banking system underwent a deep transformation process; foreign investors gained a dominating market share of more than 90% of total assets, with Austrian banks holding 43% thereof. Compared to other Central and Eastern European countries (CEECs), the degree of banking intermediation is relatively high in Croatia. In recent years, lending to the private sector and in particular to households has risen whereas lending to the general government has declined. Foreign currencies continue to play an important role in the Croatian banking sector, in particular on the liabilities side of banks balance sheets. While maintaining a large negative net foreign currency position on their balance sheets (with an increasing portion of net liabilities to nonresidents), Croatian banks overall net foreign currency position seems to be marginally positive. Still, foreign currency(-indexed) lending represents a credit risk as it entails an indirect exchange rate risk. Asset quality, by contrast, has improved significantly over the past five years, the capital adequacy ratio is on a relatively high — albeit declining — level, and real return on equity (ROE) is now as high as the profitability levels observed in other CEECs.
A ON BANKING SERVICE QUALITY IN BOSNIA AND HERZEGOVINA
The main goal of the paper is analyses of level, structure and efects of foreign direct investments (FDI), specifically in the form of mergers and acquisitions (M&A), in banking sector of Bosnia and Herzegovina. We analysed quality of services bosnian banks offer to the clients too, in order to evaulate positive effects of growing level of M&A and to stress problems bosnian banks face with in the quality services area. We used total banking assets, interest rates, structure of deposits and loans and profitability in order to evaluate banking sector itself and research among banking clients and SERVQUAL model in order to evaluate clients’ expectations and perceptions. Based on the results we obtained, it is possible to conclude that the FDI inflow has brought about the growing competition among banks on B&H market. Banks compete for each client, but mostly using conventional marketing instruments. On the other hand, we found that there is a significant gap between clients’ expectations and perception, even regarding foreign banks. We found that the main reason is a very high level of expectations created by advertising and other promotional activities by foreign banks (traditional marketing instruments), used in order to attract new clients.
Banking in transition economies : developing market oriented banking sectors in Eastern Europe
Towards market-oriented banking sectors for the economies in transition: a summary of policy recommendations bank privatization in Hungary, Poland and the Czech Republic the role of foreign banks in economies in transition regulation of bank failures retail banking in Central and Eastern Europe.