SIGNIFICANCE AND ROLE OF BANKING SECTOR IN CONDITIONS OF GLOBAL FINANCIAL CRISIS

Mutual connectedness between the banking sector and economic growth also exists in conditions of global financial crisis. In conditions of global financial crisis, it is beyond doubt that sustainability of economy and enterprises is easier, if a stable banking system is provided, and for that reason in this paper we analyze the measures, instruments and activities taken by National Bank of Serbia, as an independent financial institution, within its jurisdiction for preservation of the banking system. However, starting from the expressed mutual dependence of the banking sector and overall national economy, and having in mind the consequences of global financial crises on overall national economy of Serbia, the analysis includes a part of the measures of the Serbian Government, in order to mitigate the consequences and create the conditions for a sustainable economic growth. The measures taken have provided: primarily, that the effects of crisis flow onto Serbian economy more slowly and secondly, catastrophic consequences of global financial crisis on overall national economy have been avoided.