Azra Bico

The Efficiency of Banking Sector in Bosnia and Herzegovina in Comparison to Slovenia: Comparative Analysis

This paper analyzes the banking sectors performance of the two former Yugoslavian republics, Slovenia and Bosnia and Herzegovina. This study is the first study examining the efficiency of banking sector of two countries. Countries have formed their banking systems, with their central banks as central and main monetary institutions. Performance of the banking sector of the two countries is being examined, taking into account that one country is a post war country, while other succeeds to join to European Union. It is determined using the data on return on assets (ROA) as indicator of profit, and return on equity (ROE) as an expression of rentability of banking sector, then compared to nonperforming loans (NPL) in order to foreseethe affect on future lending. Foreign direct investment is also being examined due to the large portion of it was initially made into banking sector. Financial health of the banking sector is analyzed by comparing deposits to loans figures, in several structural aspects. Based on data Slovenia’s banking sector has higher return on equity throughoutyears, therefore it is more profitable.On the other hand Bosnia and Herzegovina’s banking sector is more risk protected, since banks have higher adequate capital that offers protection against risk.

Entrepreneurship in Bosnia and Herzegovina

This chapter depicts a glance picture of Bosnian state of entrepreneurship. It begins with a historical overview and establishment of the state. It describes the challenges that Bosnia has faced as well as its current issues. The current state of entrepreneurship, business environment, and problems of entrepreneurs and small business owners are discussed. The chapter concludes suggestions for further development of entrepreneurship in Bosnia and Herzegovina.

Entrepreneurship in Montenegro

In this chapter, the entrepreneurial activities and actual policies for the development of entrepreneurship in Montenegro are described. The study begins with providing a historical overview of Montenegro since its establishment, starting from its early times, throughout the Ottoman Empire and up to these days, when Montenegro is also one of the candidates from ex-Yugoslavia’s republics to join the EU and NATO (already a member). Then, the study further discusses the promotional activities of entrepreneurship and the role of the government in creating a favorable environment for domestic and foreign entrepreneurs. The chapter ends with providing useful future development of entrepreneurship in Montenegro. It includes, beside tables and figures, original pictures of the business environment in Montenegro.