Specifics of Basel agreements increasing the competitiveness and economic efficiency

• Main Authors: Ivančević Jovana, Radaković Milan
• Format: Article
• Language: English
• Published: University of Novi Sad - Faculty of Economics, Subotica 2014-01-01
• Series: Anali Ekonomskog fakulteta u Subotici
• Subjects: basel standards; capital; competitiveness
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2014/0350-21201431177I.pdf
• ISSN: 0350-2120; 2683-4162

The development of modern banking and the economy has increased banks' exposure to different types of risks. In the financial mechanism banking industry pays special attention to the minimum supervisory standards, which the bank has to fulfill in order to obtain and maintain a license to do business. The main reason for this is that the entire financial system and all participants ensure of a lack of capital and the emergence of risk in the banking business. Control of the banks has social significance, because disturbances in the banking sector have a bad effect on the whole economy. The question is how much can be high bank lending and what the risk can be taken, and not to endanger the safety of enforcement duties. Events that occurred in the seventies and eighties and are primarily related to the process of globalization, the debt crisis and innovation in the banking industry, had a great impact on the deterioration of capital adequacy, which led to the definition of the Basel standards. The aim of the paper is to emphasize implementation of the Basel standards in banks in Serbia, in what way and to what extent they are actually implemented in banks is a problem of labor. The research results should indicate the current work of the management team on the implementation of the Basel standards, as well as their decisions regarding the maintenance of the required level of capital and reduction of risk in banks.