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This paper analyzes the causalities between the achieved level of development of the banking sector of the Republic of Serbia through the analysis of certain parameters of financial health, as well as economic growth which is associated with parameters of the banking sector through macroeconomic parameters. The main objective of this paper is to use the multiple regression analysis and determine whether there is a mutual causality and conditionality of the performance of the real and banking sectors, or whether the performance of the banking sector has an impact on the quality of performance of the economic development. The time interval covered by the analysis is from Q4 2008 to Q1 2014

Mutual dependence of banking and real sector performance in the Republic of Serbia