Analysis of Financial Structure of the Serbian Banking Sector: Impact of the Financial Crisis

In this paper, we will analyse financial structure of the banking sector in the Republic of Serbia and based on it conclude whether the financial crisis had an effect on it. The financial sector and banks especially got affected by the recent financial crisis. There are a considerable number of papers that address this issue, but they usually refer to the banking sector of developed countries. Therefore, the research sample in this paper covers the banking sector in Serbia – 31 commercial banks, considering their importance for Serbian economy and their overall reputation. We have analysed financial statements of these banks that submitted quarterly from 2009 to the third quarter of 2012. We have calculated the main financial ratios regarding the financial structure, which has been used for financial analysis of the banking sector by other authors. Results of the research show that the value of banks’ liquid funds in the observed period fell considerably, as did the investments in fixed assets. Furthermore, indebtedness of banks rose in the period from mid-2010 to end-2012, but banks’ liquidity remained at the same level, on average.