THE ROLE OF THE SUPERVISOR PRESERVATION AND STRENGTHENING OF THE BANKING SECTOR OF REPUBLIKA SRPSKA

Abstract

Banking sector represents component of the banking system and the overall economy of the state, which a has a significant impact on the general economic environment in which all business and financial activities of economic entities are carried out, as well as all economic events that are important for the national economy. Commercial banks are facing, on the one hand, according to the management structure of the bank, and on the other hand to the state control institutions. The regulator of the banking sector, through defined instruments and legislation, strives to preserve and strengthen the stability of the banking sector, and to improve its safe, high-quality and legal operations. Absence of regulation, inadequate regulation and inadequate capacity of regulatory bodies and how they affected the situation in the banking sector as we recognize it today, i.e. in the period after the last economic crisis. State is Additionally heavy sorrow pandemic COVID -19 which is in short period caused fall economic and society activities, which are the birth of women in 2020 the first half of 2021. An attempt will be made to reduce the consequences by introducing a new, more comprehensive regulation, with uncertainty as to whether the regulatory body will be able to prevent the deepening of the crisis in the banking sector through preventive action. The Banking Agency of the Republika Srpska supervises the functioning of the banking sector Republika Srpska, as well as the general banking environment in which it is located system. The aim of the work is to analyze the impact of the crisis caused by the pandemic COVID -19 on banking sector Republic Srpska, that through quantitative indicators - the amount of total deposits/savings on the one hand, and bank placements and the quality of assets from the point of view of credit losses in the period 30.06. 2 019-30.06.2021. years, on the other. The results show that in the observed period, there is an evident increase in deposits, but also an increase in credit activities in the banking sector of the Republic of Srpska. The conclusion of the research indicates that the crisis caused by the COVID-19 pandemic did not shake confidence in the banking sector, i.e. that the changes were not so significant that they could have a decisive impact on the movements of the analyzed financial indicators during the pandemic period. The work is structured in such a way as to include both theoretical principles and concrete empirical research on the influence of supervision on strengthening the stability of the banking system.