An Overview of Small and Medium-Sized Banking Development in Bosnia and Herzegovina

KOZAREVIĆ, Emira and KOKOROVIĆ JUKAN, Meldina and SOFTIĆ, Amra (2015) An Overview of Small and Medium-Sized Banking Development in Bosnia and Herzegovina. Journal of Economic and Social Studies, 5 (1). ISSN 1986 – 8502, doi: 10.14706/JECOSS11519

12. JECOSS 5.1 (Emira Kozarevic, Meldina Kokorovic Jukan, Amra Softic).pdf

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Abstract: The purpose of this paper is to investigate the level of SME banking development in Bosnia and Herzegovina (BH). By using a structured questionnaire, the authors discuss perceptions of the banking sector representatives in BH regarding SME banking and their future plans for the management of credit risk associated with financing the SME sector. One of the main findings of this research is that the SME sector is becoming a strategic sector for BH banks and banks are willing to increase their involvement with SME clients. Authors also present results on current level of banks’ exposure to SMEs, types of financial services offered to SME’s clients by BH banks, drivers of banks’ involvement with SMEs, obstacles to further development of banks’ involvement with SMEs. Based on the banks’ responses and results of research conducted, suggestions to policy makers are given, such as tax reforms, interest rate subventions to SMEs, improvement of judiciary, simplifying administrative procedures. Also, some recommendations are given to banks, such as the need for better understanding the requirements of SME clients providing them more personal approach and creating a partnership, as well as lobbying the government bodies to change regulations governing SME sector. Keywords: Financial system; Small and medium-sized enterprises (SMEs); SME banking; Comparative experiences; Bosnia and Herzegovina (BH)

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Journal of Economic and Social Studies
Depositing User: Mrs. Emina Mekic
Date Deposited: 21 Jan 2015 13:30
Last Modified: 10 Jun 2015 13:32

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