As a rule, long-term bank loans entail solid security - a mortgage, regardless of their purpose. The mortgaged property has its specific market value during the loan approval period but during the repayment period, the value of the real estate varies. This is the reason why the initially specified indicator of the coverage of loans with the value of the mortgage - the LTV ratio changes, which in turn increases the risk of loan repayment. The aim of this paper is to draw attention to the necessity of establishing adequate initial LTV ratios (together with other important ratios). This would help nullify the risk of any variations in real estate prices, the loan currency risk, the interest rate risk, as well as the risk of an increase in bank's claims because of a long foreclosure process. The paper analyses effects of changes in LTV ratios caused by varying circumstances using the case study method. The comparative method analyses the changing trends of data on the LTV ratios for the already approved loans over a seven-year period by comparing the flow of the loan capital sum with the real value of the mortgage for three types of loans. The conclusion reached is that commercial banks should establish the initial LTV ratio for various long-term loan products and thus prevent its rise. Banks should do this by taking into account all the factors that cause the ratio’s increase, and thus give preference to the reduction of the credit risk and not the attractiveness and accessibility of loan products.
Financial Technologies, or abbreviated FinTech, is the name used for companies that develop or use the latest information technology in order to improve financial services. Their development requires considerable experience and knowledge from the existing financial market and banking. These companies focus on the end user in order to develop the best technological solutions for providing financial services by observing and studying their needs and habits, with the help of rapid technological development in the IT sector, on the one hand, and on the other hand, the slowness and imposition of strict conditions for the banking sector and its corresponding regulations. The emergence of such companies lately and their rapid penetration into the market has begun to threaten the position of traditional banks and even induce customers to leave the traditional financial institutions such as banks. Banks are becoming aware of the growing competition from Fintech companies and are trying to find satisfactory solutions to keep their customers. At the same time, in the era of general currency digitization and the development of crypto-currency, banks also face the challenge on the other side, which comes from the Central Banks. Central banks have begun to consider issuing their digital currency CBDC-the central bank digital currency, or the digital form of existing money as a legal means of payment, such as current banknotes and coins. This changes the direction of supply of money for the new digital economy from the state, that is, from the level of the Central Banks, which would change from different forms of crypto-currency, such as bitcoin etc. at CBDC. These banks are facing new challenges because the Central Banks can become competitors to commercial banks in the segment of deposit and payment transactions. This sets new tasks and regulatory challenges to the banking system in terms of carefully regulating the relationship of the Central Banks as regulatory institutions and systems of commercial banks in the future.
RezimeImajući u vidu velike rizike plasmana kredita malim preduzećima i preduzetnicima u Srbiji, u ovom radu smo analizirali taj problem i predstavili konkretne aktivnosti koje poslovna banka treba da preduzme kako bi smanjila ove rizike. Analizom stanja poslovnog okruženja u Srbiji i trenutne prakse plasmana kredita, zaključili smo da je prilikom odobrenja kreditnih zahteva, bez izuzetka, neophodno preduzeti sledeće analize i aktivnosti: statusna provera klijenta, finansijska analiza preduzetničkog biznisa, analiza preduzetnikovog poslovanja, procena urednosti izmirenja obaveza preduzetnika, analiza rizika kreiranja ponude (seta proizvoda) banke, evaluacija instrumenata obezbeđenja kredita, valutni rizik kreditiranja biznisa i rizici kreditiranja preduzetničkog biznisa u razvoju. Slične studije su sprovođene u Sjedinjenim Državama, sa naglaskom da je ova analiza fokusirana na potrebe i praksu bankarskog sistema u Srbiji, sa ciljem da poslovne banke navedene aktivnosti i analize dosledno i sveobuhvatno primenjuju, stavljajući ih u prvi plan ispred ispred ubrzanih kreditnih procedura, akvizicije i dobrih poslovnih rezultata na kratak rok. SummaryBearing in mind the major risks of lending to small enterprises and entrepreneurs in Serbia, this paper analyzes this problem and presents the concrete activities that commercial banks should undertake to mitigate these risks. After analyzing the business environment in Serbia and the current lending practice, we have concluded that in the process of approving loan applications, without exception, the following analyses and activities need to be undertaken: verification of the client's status, financial analysis of the entrepreneurial business, analysis of the entrepreneur's business operations, assessment of how regularly the entrepreneur settles his liabilities, analysis of risks entailed by the bank's offer (i.e. the set of products), evaluation of loan collaterals, currency risk of lending to the business, and risks of lending to a start-up entrepreneurial business. Similar studies were conducted in the United States, yet this particular analysis focuses on the needs and practices of the banking sector in Serbia, with the aim of suggesting to commercial banks to implement the above stated activities and analyses persistently and comprehensively, putting them ahead of accelerated lending procedures, acquisitions and sound, short-term business results. Keywords UvodJedan od osnovnih modela pospešivanja ekonomskog razvoja u post-tranzicionom periodu, upravo je razvoj malih preduzeća i pospešivanje preduzetništva. Gašenjem velikih industrijskih giganata, pa i čitavih sektora privrede, povećao se broj nezaposlenih. S druge strane, mlađe generacije, po završetku školovanja, teško dolaze do zaposlenja i dodatno povećavaju broj nezaposlenih na tržištu rada. Prema podacima Republičkog zavoda za statistiku za I kvartal 2014. godine, nezaposlenost iznosi 20,8% radno sposobnog stanovništva. Visoka nezaposlenost, ali i relativno nizak nivo prosečne neto zarade u Republici Srbiji...
There are numerous and diverse Serbian road users or traffic participants on a daily basis. Farm vehicles are also considered participants. In fact, from all the farm vehicles engaged in traffic, it is tractors that are involved the most in traffic accidents. In this paper, we will present valid data on tractor-related traffic accidents during the 2012-2016 period, with a focus on areas under the jurisdiction of two police administrations from different parts of Serbia -Valjevo and Subotica. By analyzing data on farmsteads and comparing traffic accidents in these areas, we pointed out the multiple negative economic effects and possible measures for their mitigating, as well as the differences between the regions of western and northern Serbia. This data, indicates that there should be more focus on the consequences resulting from these incidents as they indicate the most diverse segments of damage in the area of agriculture.
In recent years, the banking sector has increasingly turned to the agricultural sector. There is a noticeable increase in the total claims of the banking sector from registered farms in the period 2012-2020, while the part of the domestic product generated by the agricultural sector also recorded growth, but not in the same percentage as bank loans to agriculture. The aim of this paper is to examine the interdependence of the increase in total claims of banks on registered agricultural producers with the increase in the domestic product generated by the agricultural sector. The method of statistical correlation was used in this paper. The impact and changes of investment loans in agriculture, loans for working capital, but also the change in bank claims from agricultural producers based on interest and fees have been analyzed. The conclusion is that there is a connection between loans and the domestic product of the agricultural sector, but that there are other factors that have an impact, too. Although in recent years the banking sector has been more open to the agricultural sector and although loans have become more affordable, it is necessary to create conditions for even greater availability of loans to agricultural producers, which would create positive effects on agriculture.
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