Unapređenje sistema za očuvanje stabilnosti finansijskih institucija

Abstract

The increasing globalization and liberalization of financial markets in the nineties of the last century essentially changed the business environment of the banks and other financial institutions. Although it gave its contribution for the improvement of the economic efficiency, it also caused the increased instability in the financial markets. In such an environment, there was a need to review the role of key regulatory agencies, primarily central banks, which in addition to price stability, had to pay a special attention to maintaining financial stability. Taking care for financial stability requires a specially designed appropriate regulatory framework that includes a variety of institutions, rules and procedures. Accompanying the life cycle of financial institutions, the following are its inevitable components: licensing policy, ie. the rules for banks to enter the system; the functions of supervision; the lender of last resort function; deposit insurance and the rules for banks exiting the system. While recognizing the specificity of these infrastructure components of the financial system stability, the dissertation emphasizes the need for their coordination both at the national and the supranational level. Since the disorders that result in extreme crisis do not happen by accident, the behavior of key macroeconomic and macrofinancial indicators of the financial system stability, as well as the so-called institutional variables included to describe the basic components of the system for preserving the stability of financial institutions and markets are analyzed. Starting from the database of systemic banking crisis in the period from 1977 to 2011, by using the signaling methods and logit regression models, we have tested the hypothesis that an inadequate regulatory framework for preserving financial system stability is one of the main reasons for the financial crisis that have caused disruption in the real economy. The hypothesis is confirmed, and the lack of an adequate system of regulation and supervision, and inadequate systems that preserve financial stability in its ex-post part (deposit insurance and the restructuring policy) are emphasized. One part of the dissertation is devoted to the analysis of the specifics of the regulatory framework for preserving the financial system stability in particular countries in order to make recommendations on how to improve the regulatory framework for preserving the stability of the financial system of Serbia.