Evaluation of financial performance of banking sector: evidence from bosnia and herzegovina, croatia, serbia and slovenia

The objective of this study is to compare the financial performance of the banking sector in some ex- Yu countries: Bosnia and Herzegovina, Croatia,Slovenia and Serbia for period from 2005 to 2010. The banking sector of these countries experienced reforms after the separation from the Yugoslavia. The financial performance of banks is studied on the basis of some selected financial variables and ratios that are either obtained from different sources either calculated by author.During this period the banks become privatized and there is increase in the presence of the foreign owners on the Balkans.This is mostly descriptive research that explains and provides some insights about situation in banking of the selected countries. Financial performance in this study is measured by selected indicators, such as return on asset (ROA), return on equity (ROE), capital adequacy ratio (CAR), share of non-performing loans (NPL), participation of deposits, assets and loans in Gross Domestic Product (GDP) of the country.Data show that banking system of these countries suffers from problems in the banking sector, largely influenced by its huge debt to IMF, political situation, financial crisis, internal situation and other political factors

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Banks ,

Return on Assets ,

Non-performing loans ,