Profitability of traditional banking in Croatia
A banking system cannot be properly assessed out of context of the overall financial and economic system in which it operates. A stable and successful banking system is a precondition for efficient mobilisation and allocation of savings to profitable projects, and as a result, stable growth of the overall economy. Otherwise, an unstable and inefficient banking system is not able to fulfil its fundamental tasks and functions, but as a rule results in production and investment decrease, decline in living standards and decrease in economic growth. This paper reviews the sustainability of the traditional banking activities in Croatia, taking into account the current economic surroundings, market environment, regulatory requirements and other important factors of banks' performance. The findings of this analysis may also be of use to many other countries because the problems and questions to which this paper is trying to give answer to are of universal and global character.