Strategies Credit Policies of Commercial Banks in Serbia

Pjanić, Miloš and Marjanović, Darko and Lučić, Danilo (2012) Strategies Credit Policies of Commercial Banks in Serbia. In: II International Symposium Engineering Management and Competitiveness (EMC2012), Zrenjanin, 22-23rd June 2012. Technical Faculty "Mihajlo Pupin", Zrenjanin, pp. 451-455. ISBN 978-86-7672-165-8

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Abstract

Contemporary business conditions involve the active participation of banks in the financial market. This involvement is primarily related to the approval of different types of bank credits to economy and citizens for their productive functioning, as well as to successful and organized implementation of credit policy by each bank. Today we can note different types of banking markets, which entail the differences between their participants. As credits represent the largest item in the banks’ assets of balance and the largest source of interest income, it is necessary to establish the strategy of credit policy to contribute to the maximization of bank’s earnings, all within the boundaries of acceptable risk level. It is essential to build a distinct credit policy, which includes clarity of regulations and conditions under which the bank is willing to approve credit to its clients. The banks’ policy of credit placements should be noticeable, transparent and continuous, so as to be projected both in short and long term respectively, where we should take into account that long-term projections should be more flexible, so that the bank can adapt at any time to new regulations and opportunities offered by the credit market. This paper addresses the types of credits approved by banks, as well as the market coverage of credit placements towards economy and population, current credits and the instruments for achieving them.

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