After more than eight years of implementing transition reforms, the economic environment in Serbia, while showing signs of progress, remains unsatisfactory. The economy of Serbia is facing too many difficulties, which are reinforced by the “spillovers” from the global financial crisis....

The global financial crisis has been threatening the banking world since 2007. The erosion of profits and rising losses of banks have been the inevitable consequence of this crisis. "The decline in bank profits was a global phenomenon" (BIS, 2009). Consequential decline in profitability during...