The Model of Enterpreneurial Bank

• Main Author: Vitomir Slijepcević
• Format: Article
• Language: English
• Published: University of Banja Luka, Faculty of Economics 2007-06-01
• Series: Acta Economica
• Subjects: economic system, financial system, enterprise, commercial bank, entrepreneur bank, micro, small and medium enterprises, manager, endorser, interest, credit, deposit, profit, guarantee fund and multiplication coefficient.
• Online Access: http://ae.ef.unibl.org/index.php/AE/article/view/271
• ISSN: 1512-858X; 2232-738X

The economy of Republic of Srpska, in other word, of Bosnia and Herzegovina, is one of the most undeveloped in this part of Europe. Economic system has a lot of weaknesses: economic, legislative and social characters. In such conditions the financial system, as a subsystem of economic system, experiences all consequences of such a system. The commercial banks of Republic of Srpska went through the process of proprietary transformation, and that process in Federation of Bosnia and Herzegovina is in its final phase. Parallel with this process, there was the process - proprietary transformation of economic entities. The point of this process is that there was the privatization of devastated and war-demolished economy. The consequences of this condition are cessation of many enterprises, a great number of economically non-active population, grey economy increment and great investment risk of commercial banks, in other words other investors. The entrepreneur activities are not stimulated enough and the country, as well as commercial banks, did not give adequate preamble. The possible solution is the adequate model of entrepreneur bank, which would through its partnership with the country, support micro projects of small and medium enterprises, as a strategic goal and task in creating common economic development of Republic of Srpska, in other word of Bosnia and Herzegovina. Such a model of entrepreneur bank, which is organized to give financial support for founding, increment and development of micro, small and medium enterprises, is essential and possible. It would have activities in order to found entrepreneur surroundings, as a subcondition for stable economic increment and development, which should lead the economy of Republic of Srpska to the level that would allow the country to integrate into european economy without any obstacles or into any other integrations. Due to the fact that nowadays there is no commercial bank which is orientated to financial support of founding, increment and development of micro, small and medium enterprises, the aim of this task is to prove that it is possible to create adequate model of entrepreneur bank which would be in function of country development of economic system.