Movements of Balance Sheet Items and Liquidity Nexus: Evidence from Serbian Banking Sector
Sažetak
The subject of the research is to determine the liquidity quality of the Serbian banking sector. The aim is to find out what the effect of fluctuation in balance sheet items on the most common liquidity indicators is. The research was carried out on the sample of 10 leading Serbian banks in terms of assets (Intesa, Komercijalna, UniCredit, Societe Generale, Raiffeisen, AIK, Euro Bank Belgrade, Erste, Postanska stedionica and Vojvodjanska), by applying the Pearson’s correlation coefficient. The four most commonly used liquidity ratios were used as dependent variables, while individual balance sheet items (part of the liquidity formula) were used as independent variables. According to the conducted research, Serbian banking sector recorded positive performance, i.e. was sufficiently liquid, from 2001 to 2017. Furthermore, very strong correlation was observed between an increase in cash and an increase in bank liquidity, while there was a moderate correlation between an increase in cash and average total liabilities. Moreover, the increase in loans and receivables from banks and other financial institutions had a significant impact on the increase of liquidity, as well as on the increase in provisions and equity. Finally, the increase in the value of owned property and deposits had a negative impact on liquidity ratios.
Reference
Bankarski sektor u Srbiji, Izveštaj za IV tromesecje (2013). Narodna banka Srbije, Retrieved on 17th of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_13.pdf
Bankarski sektor u Srbiji, Izveštaj za IV tromesecje (2014). Narodna banka Srbije, Retrieved on 25th of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_14.pdf
Bankarski sektor u Srbiji, Izveštaj za IV tromesecje (2015). Narodna banka Srbije, Retrieved on 18th of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_15.pdf
Bankarski sektor u Srbiji, Izveštaj za IV tromesecje (2016). Narodna banka Srbije, Retrieved on 19th of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_16.pdf
Bankarski sektor u Srbiji, Izveštaj za IV tromesecje (2017). Narodna banka Srbije, Retrieved on 23th of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_17.pdf
Bankarski sektor u Srbiji, Izveštaj za IV tromesecje. (2012). Narodna banka Srbije, Retrieved on 27h of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_12.pdf
Barjaktarovic (2009) Transformacija domace banke u savremenu evropsku banku, Univerzitet Singidunum.
Barjaktarović, L., & Ječmenica D. (2011a). Optimizam vs pesimizam konkurentnosti bankarskog sektora Srbije. Industrija, 2, p.137-150.
Barjaktarović, L., Filipović, & S. Dimić, M. (2013). Concentration level of banking
industry in CEE countires Industrija, 41 (3), 39-53. doi: 10.5937/industrija41-4712
Barjaktarovic, L. (2013). Upravljanje rizikom. Univerzitet Singidunum.
Barjaktarovic, L., Jovic, Z., & Milojević, M. (2018). Poslovne finansije, Univerzitet
Singidunum.
Barjaktarovic, L., & Stefanovic, N. (2019). What is the Effect of Intangible Assets on Earnings of the Serbian Banking Sector? Industrija, Vol. 47, Iss. 1/2019, 61-75.
Barjaktarovic, L., & Stefanovic, N. (2019). What is the Effect of Intangible Assets on Earnings of the Serbian Banking Sector? Industrija, Vol. 47, Iss. 1/2019, 61-75.
Barjaktarovic, L., Jovic, Z., & Milojević, M. (2018). Poslovne finansije, Univerzitet Singidunum.
Berger, A., Bouwman, C., Kick, T. & Schaeck, K. (2017). Bank risk taking and liquidity creation following regulatory interventions and capital support, Journal of Financial Intermediation, Forthcoming, 26 (1): pp. 115-141.
Deloitte. (2016). Umeren rast profitabilnosti.Retrieved on 06st of September 2019 from site https://www2.deloitte.com/rs/sr/pages/financial-services/articles/banking-and-insurance2016.html .
Dimic, M. & Barjaktarovic, L. (2017) Ownership transformation of the banking sector in SEE countries, Bankarstvo 1/2017, pp. 85-103
Doojav, G. & Batmunkh, U. (2018). Monetary and macroprudential policy in a commodity exporting economy: A structural model analysis. Central Bank Review, Vol. 18, Issue 3: pp. 107-128.
European Central Bank /ECB/ (2017). Access to Finance in the Western Balkan, Occasion Paper Series No 197/2017.
Garic, D. & Filipovic, S. (2019) What are the prospects of the Yuan becoming the World's new Reserve Currency? Industrija, Vol 47, Iss. 2/2019, 61-75.
Hadzic, M. (2009). Bankarstvo, Univerzitet Singidunum.
Ilic, Dj. & Ilic, I. (2018) Specifičnosti finansiranja proizvodnih malih i srednjih preduzeća. Trendovi u poslovanju, Br. 12, Sv. 2/2018, 19-28.
Jevtic, D. Vesic, T., Barjaktarovic, L (2019). Do Serbian banks make optimal corporate credit decisions? Book of proceedings form International conference FINIZ 2019, 22-26.
Jelenkovic, Z. & Barjaktarovic, L. (2016). The Risk Management Functions in the Conditions of Globalization: Case Study of the Republic of Serbia, Management 2016/79, p.37-45
Knezevic, G., Stanisic, N., Mizdrakovic, V. (2013). Analiza finansijskih izveštaja. Univerzitet Singidunum.
Kontrola poslovanja banaka (2010). Narodna banka Srbije, Retrieved on 15th of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_10.pdf
Kontrola poslovanja banaka, Izveštaj za IV tromesecje. (2011). Narodna banka Srbije, Retrieved on 15th of July 2019. from site https://www.nbs.rs/internet/latinica/55/55_4/kvartalni_izvestaj_IV_12.pdf
Mishkin F., Eakins, S. (2012). Financial markets and institution – 7th edition. Pearson Education, Boston.
Mishkin, F. (2006). Monetarna ekonomija, bankarstvo i finansijska tržišta. Data Status.
Odluka o racunovodstvenom otpisu bilansne aktive banaka (2019). Narodna banka Srbije, Retrived on 04th of January 2020. from site https://www.nbs.rs/internet/latinica/20/kpb/otpis_bilansne_aktive.pdf
Rose, P. & Hudgins, S. (2015). Upravljanje bankama i financijske usluge. Mate d.o.o.
Vesic, T., Gavrilovic, M. & Petronijevic, J. (2019). The influence of liquidity and profitability on the banking sector performances – the example of Serbia. International Review No. 1-2/2019, 75-81.
World Bank /WB/ (2018). The Global Findex Data Base.
World Bank Group /WBG/ (2016). Financial sector outlook: Financial systems in the Western Balkans – Present and Future, World Bank Group Finance & Markets.