Page 42 - Ekonomija i Biznis_May 2016.indd

РInУthБeРfoИcuКs А
ses show that the structure of the banks’
sources affects the volatility of the credit
growth (Akdogan et al., 2016) whereby,
generally speaking, the credit growth
dominantly based on additional (foreign)
sources is subject to increased fluctuations
than in case of funding mostly based on the
basic sources (domestic savings).
Another transmission channel of the
global economy is through the trade rela-
tions whereby the disaggregation of the
import and export by components provides
beneficial realizations. In conditions of glo- petitiveness of the banking system, the
balization, open economies more and more
frequently within their own limits dispose
of companies that are part of some global
production chain. In such conditions, they
adjust to the conditions and the way of
work at the level of the global group, ac-
cordingly their import successes to a great
extent are conditioned by the reputation
and the competitiveness of the interna-
tional group, while the indicators of the
competitiveness of the domestic economy,
including the exchange rate, are less im-
portant (Kelm, 2016).
A third channel of global transmission
of economic and financial impacts on the
domestic economy is through the partici-
pation of foreign capital in the domestic
banking system whereby the impacts can
be multilateral (on the credits, the fund-
ing sources etc.). The presentation about
the determinants of non-performing loans
42 May 2016
in the banking system (Ivanovic, 2016) in-
dicates that not only the level of foreign
capital in the banking system, but also the
characteristics of the country of origin of
the parent bank, should be considered in
the modeling of the non-performing loans
of banks as factors that may affect their
level.
The fifth session was dedicated to the
challenges of the financial stability, and
consequently it was quite diversified. The
covered aspects were related to the com-
real estate market and the indebtedness
of the private sector. In terms of the com-
petitiveness of the banking systems (Leroy
and Lucotte, 2015), it was pointed out that
competition increases the risk appetite
and the individual vulnerability of banks,
however on the other hand, in case of in-
dividually more powerful institutions, it
reduces the system risk and strengthens
the financial stability. The policy of com-
petition of the regulations, as well as their
measures must pay attention to these two
vulnerability aspects in order to maintain
the financial stability.
The high indebtedness of the private
sector, particularly of the enterprises, in
many economies, is one of the greatest
threats for the profitability of the corpo-
rate sector, their investment activity, and
consequently their economic growth. Such
condition of the corporate sector, supple-