Process of transformation is evident in developed and less developed countries and covers all areas of industry and social life. In accordance with it, the transformation of banking sector is absolute, and it touches our country.The dynamics of transformation depend on the level of country development and happenings in the world economy and politics. The happenings on the world financial market in the last decade, aimed at pure profit increase (without analysis and respecting present risks), resulted from the world economic crisis by the end of 2007. It indirectly makes the process of transformation of the Serbian banking sector more difficult, due to the fact that it depends on credit worthiness and development strength of own customers and socio-political factors in the country. Local banks are organized in a modern way, which is determined by the EU and Basel Committee Rules, and have modern electronic equipment and mainly professional staff. Stronger competition in the local market will make differences between banks more visible (such as high structural imbalance in terms of financial strength and business results, general level of business efficiency is at low level), which makes space for further mergers and acquisitions of the banks, as a way of faster capital strengthening of the banks, and have other advantages connected to the organization and technical support with direct impact on the efficiency and effective use of the funds.

Lidija Barjaktarović, Dejan Ječmenica