- noneedit
- I am a banking professional with sixteen years of experience in both commercial and central banking. So far I have b... moreI am a banking professional with sixteen years of experience in both commercial and central banking. So far I have been working in Treasury and Investment Banking Division, Corporate Sales Department in Raiffeisen bank ad Belgrade and I am currently employed at the National Bank of Serbia, first at Monetary Operations Division, Department for Foreign Exchange Market and at present at Division for Macroprudential Supervision, Financial Stability Department.
My professional experience is related to maintaining daily contact with existing clients to foster customer relationship by informing clients on market development and promotes bank’s products and services, monitoring of developments in the domestic foreign exchange market, cooperation in the maintenance and monitoring by domestic and international regulatory authorities a framework of financial stability and produces periodic information with proposals for harmonization with the best international practice.
Colleagues know me as a responsible and hardworking person who is not afraid of new business challenges. I have critical thinking and problem-solving skills, as well as excellent interpersonal and communication skills. Motivated self-starter, able to work independently and as part of a team
I am sensitive to the requirements of interacting with different audiences and able to adjust communication style when dealing with Junior or Senior staff, internal vs. external and with staff from different cultures.
I have a BA, MBA, and Ph.D. at the Faculty of Economics, University of Belgrade. Areas of interest are financial markets, securities trading, and investment banking, foreign exchange regimes, exchange rate policy, hedging instruments and strategies, monetary policy and its instruments, micro and macroprudential policy, and financial stability.
I’m always interested in hearing from former colleagues, managers, or just interesting creative people, so feel free to contact me if you’d like to connect.edit
Artificial intelligence is increasingly being used in a variety of areas, including central banking, to improve decision-making, business efficiency, and risk management. Today, practically all central banks are investigating the use of... more
Artificial intelligence is increasingly being used in a variety of areas, including central banking, to improve decision-making, business efficiency, and risk management. Today, practically all central banks are investigating the use of artificial intelligence in their operations, such as economic forecasting, risk analysis, policy research, and market analysis. All of these can help to increase the financial system's resilience at a time when the global economy is becoming more interconnected and complex. On the other hand, it is vital to highlight the emerging obstacles of artificial intelligence, such as cyber security, data privacy, and algorithm transparency, which central banks must address to effectively utilize the benefits of artificial intelligence applications. When deploying artificial intelligence, central banks should take a thorough and balanced approach, considering the ethical, legal, and social implications while maximizing on all of the benefits that artificial intelligence may provide. Continuous monitoring of regulatory frameworks and international cooperation can assist central banks in realizing the potential of these technologies. In this paper, we will analyze the integration of artificial intelligence into central banking: opportunities, challenges, and implications. We will examine the opportunities, challenges, and implications, as well as the use of artificial intelligence in the operations of leading central banks, with a particular emphasis on its use in Serbia's banking sector.
Research Interests:
The aim of this paper is the presentation of all available investment possibilities of the household sector in Serbia. The level of these investments is defined by the level of disposable income, financial literacy, investment... more
The aim of this paper is the presentation of all available investment possibilities of the household sector in Serbia. The level of these investments is defined by the level of disposable income, financial literacy, investment alternatives and the development of the financial market and its instruments. Most of the investments in the household sector in Serbia are directed in savings, mainly in foreign currency savings. Other possibilities including investment in different types of bonds, but also an investment in stock and investment funds and other types of savings like voluntary pension funds and life insurance. The main limitation of the household investment possibilities in Serbia is the capital market which is shallow and future activities should be focused on its development. Capital markets can play a strong role in economic growth and provide financing for the state and the private sector by offering access to domestic and international financial resources. The primary func...
Research Interests:
The accomplishment of financial stability within the purview of macroprudential policy as well as price stability, which reflects the mandate of monetary policy, are the primary objectives of the majority of central banks today. In... more
The accomplishment of financial stability within the purview of macroprudential policy as well as price stability, which reflects the mandate of monetary policy, are the primary objectives of the majority of central banks today. In addition to the aforementioned, central banks are increasingly examining how climate change is affecting the financial system because it has an impact on inflation, economic growth, and financial stability. The threat posed by climate change has passed into the present, but its repercussions are becoming more tangible every year. Climate change can result in new financial system risks, two of which, in the viewpoints of central banks, stand out: physical risks and transition risks. For these reasons, central banks and financial regulators have started putting monetary and prudential policy measures into place to deal with the effects of climate-related financial risks. These measures include the use of climate stress tests and the active development of green financial instruments. In order to reduce the negative effects of upcoming climatic changes, central banks must continue to concentrate on maintaining financial stability with adequate coordination with macroprudential, monetary, and fiscal policies.
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The aim of the paper is to present Serbia's accomplishments in the areas of sustainable development and green transition. The sustainable development goals are now a global call to action to eradicate poverty and safeguard the environment... more
The aim of the paper is to present Serbia's accomplishments in the areas of sustainable development and green transition. The sustainable development goals are now a global call to action to eradicate poverty and safeguard the environment while enabling people to live prosperous lives. The goal of Serbia's "green transition" is to move away from fossil fuels and toward renewable energy sources while upholding the values of equity and sustainability. The green transition can support economic development, environmental preservation, social fairness, and human health. These two processes are connected and should work together to help the world become climate-neutral. In the first part of the paper we will discuss the Republic of Serbia's legal framework and accomplishments in the areas of green transition and sustainable development. The final section of the work is devoted to the proposals of future courses of action that might be carried out in the ensuing time. Serbia has so far demonstrated a readiness to respect the principles of sustainable development while making a concerted effort to make the transition to a green economy. This strategy highlights the significance of these processes and the Republic of Serbia's responsible approach to accomplishing these objectives.
Research Interests:
On a global level, the coronavirus pandemic has triggered serious social and economic turbulence unseen since the Great Depression. To address the effects of the pandemic in our country, such circumstances necessitated major action by the... more
On a global level, the coronavirus pandemic has triggered serious social and economic turbulence unseen since the Great Depression. To address the effects of the pandemic in our country, such circumstances necessitated major action by the monetary and fiscal authorities. In this paper, we will analyze the effects of the COVID-19 pandemic on the banking sector and the country's economy in the years leading up to, during, and following the pandemic. The analysis indicated that the Republic of Serbia had attained and maintained financial and macroeconomic stability in the years before the pandemic, giving it the space, it needed to enact a sizable package of fiscal relief for the country's corporates and households. Additionally, Serbia's banking industry continued to be well-capitalized and liquid, which helped to maintain the country's financial stability. All of the above indicates that the adequate and timely measures applied contributed to the stability of the banking sector while preserving economic indicators.
Research Interests:
A component of digital finance that has been developed in an aim to decrease the usage of cash payments and improve financial inclusion is crypto-asset. Concerns have been raised about the preservation of financial stability, which stands... more
A component of digital finance that has been developed in an aim to decrease the usage of cash payments and improve financial inclusion is crypto-asset. Concerns have been raised about the preservation of financial stability, which stands in for one of the primary objectives of central banks—along with price stability—as a result of the significant growth of the market capitalization of crypto-assets, as well as the rise in the variety of crypto-assets instruments and the volatility of their prices. Operating outside of national borders, crypto-asset trading platforms could lead to a concentration of risk and a lack of business transparency. The market for crypto-assets is growing more quickly, which highlights the need for strict regulation of that sector of the market, data collection to effectively monitor transactions, as well as providing protection for consumers and investors. The safety of all partipicants, the efficient operation of the financial system, and the maintenance of financial stability should all be guaranteed by the regulation of the crypto-asset market.
Research Interests:
Research Interests:
New trends and challenges at the global level have forced central banks to address issues such as climate change, digitalization, and analysis of real estate market developments. Thus, central banks are no longer just institutions whose... more
New trends and challenges at the global level have forced central banks to address issues such as climate change, digitalization, and analysis of real estate market developments. Thus, central banks are no longer just institutions whose goal is to achieve and maintain price and financial stability. Bearing in mind that the costs of repairing the consequences of climate change can significantly affect monetary and fiscal policy, the issue of climate change is of great importance today. The emergence of crypto currencies (such as bitcoin) and the advancement of other forms of payment all point to the importance of digitization. The movement of prices on the real estate market affects price and financial stability, and inadequately secured mortgage loans were one of the causes of the financial crisis of 2007/2008. This paper will analyze new challenges for central banks, such as climate change, digitalization, and analysis of real estate market developments.
Research Interests:
Green finance is the basis for the development of sustainable financing of environmental projects with the aim of respecting environmental and social aspects in making investment decisions. The development of green finance enables a green... more
Green finance is the basis for the development of sustainable financing of environmental projects with the aim of respecting environmental and social aspects in making investment decisions. The development of green finance enables a green transition towards economic growth that will be sustainable in the long run because it is based on the principles of preserving the environment and reducing the risk of climate change. This creates a basis for preserving macroeconomic stability based on the development of new alternative sources of financing. The aim of this paper is to present green finance, with special reference to Serbia. The paper covers the regulation of green finance, but also the analysis of green finance instruments in terms of types and features and their development.
Research Interests:
In the selection of targets of the monetary policy, taking into account legal decisions, central bank may decide to target monetary aggregates, targeting exchange rate, inflation targeting and to combine some of the previously mentioned... more
In the selection of targets of the monetary policy, taking into account legal decisions, central bank may decide to target monetary aggregates, targeting exchange rate, inflation targeting and to combine some of the previously mentioned modes. Each elected regime of monetary policy is necessary to harmonize with the exchange rate regime. Adequately chosen exchange rate regime is a necessary, but not sufficient condition for successful economic development of a country. The best set up of the exchange rate system will not give satisfactory results if occurring weaknesses and disorders in domestic economic flows, while on the other hand, the disadvantages in the foreign exchange system can be the causes of such disorders. If from theoretical aspect analyzes the compliance of the objectives of monetary policy and currency regime, it can be recognized the validity of decisions of the monetary authorities in Serbia to implicitly since 2006, and explicitly since 2008 apply inflation targeting as a monetary policy objective, and accordingly choose managed floating exchange rate. Additionally, assumption of implementation inflation targeting is to ensure that the inflation rate is moving in the targeted framework and that the reference rate changes depending on the movement of inflation and inflationary expectations. However, if we examine the practical application of inflation targeting in Serbia, the results are not satisfactory. Inflation rate, since inflation targeting is applied, is usually beyond the set targets, while the reference rate had holded at a high level in comparison with low inflationary expectations. This situation in the monetary system indicates either the option to amendment target or on its change.
Research Interests:
The analysis of Serbia's residential real estate market is the main goal of this paper. Price movements in that part of the market affect price and financial stability equally, which are thus the main goals of most central banks. Prior... more
The analysis of Serbia's residential real estate market is the main goal of this paper. Price movements in that part of the market affect price and financial stability equally, which are thus the main goals of most central banks. Prior to the highly contagious COVID-19 pandemic, there was a gradual increase in the number of transactions involving real estate and prices, with oscillations observed throughout the second quarter of 2020. In this paper, we will present the available databases from the Serbian residential real estate market, as well as regulations that have been in place since the 2000s. By analyzing the trajectory in the long run of the housing credit share to GDP by using a Hodrick-Prescott one-sided filter with the parameter set to 400,000 and correlation and regression analysis, the paper’s concluding part will determine whether there is a price bubble in this market segment. According to the analysis, there is currently no price bubble in Serbia's residential real estate market.
Research Interests:
A stable, liquid, and profitable banking system is required for any country to achieve economic growth and development. Comprehensive regulation is required to achieve and maintain the banking sector's stability and resilience, which is... more
A stable, liquid, and profitable banking system is required for any country to achieve economic growth and development. Comprehensive regulation is required to achieve and maintain the banking sector's stability and resilience, which is especially important during times of crisis. The Basel Committee on Banking Supervision publishes recommendations for global banking regulation and supervision in the form of the Basel Accord. The development of the aforementioned standards aims to strengthen the banking system's resilience and increase its capitalization. Basel I was adopted in 1988, and Basel II was adopted in June 2006 to improve it. The global economic crisis exposed flaws in financial system regulation, prompting the Basel Committee on Banking Supervision to present Basel III in December 2010. The introduction of Basel 3.1, which refers to the new standard for operational, market and credit risk, as well as credit valuation adjustment, was expected to improve the regulation even further. Because of the coronavirus, its implementation has been pushed back to January 1, 2025.
Research Interests:
The purpose of this paper is to examine the role of primary dealers, whose introduction promotes the development and trading of securities on the primary market while also making government securities easier to place. As a result, primary... more
The purpose of this paper is to examine the role of primary dealers, whose introduction promotes the development and trading of securities on the primary market while also making government securities easier to place. As a result, primary dealers act as a bridge between the government and large institutional investors. Their active role increases secondary market liquidity, which can potentially lead to an increase in investor base, simplification of the trading process, and reduction of transaction costs. As a result, borrowing costs for securities issuers are reduced, which contributes to the continued development of financial markets. In this paper we will examine the selection criteria and obligations of primary dealers, as well as their role in capital market development and
monetary policy implementation. The final section of the paper focuses on the evolution of this function in Serbia. So far, regulatory changes in Serbia have enabled the function of primary dealers to be implemented, but they have not yet been implemented. Their implementation in Serbia would increase primary market liquidity, reduce the risk of debt financing, and contribute to the secondary market’s further development.
monetary policy implementation. The final section of the paper focuses on the evolution of this function in Serbia. So far, regulatory changes in Serbia have enabled the function of primary dealers to be implemented, but they have not yet been implemented. Their implementation in Serbia would increase primary market liquidity, reduce the risk of debt financing, and contribute to the secondary market’s further development.
Research Interests:
The presence of the corona virus has contributed to increased uncertainty in the international commodity and financial markets. The development of new strains of the virus, the availability of vaccines and the speed of their distribution... more
The presence of the corona virus has contributed to increased uncertainty in the international commodity and financial markets. The development of new strains of the virus, the availability of vaccines and the speed of their distribution have affected economic and financial stability. Such movements have not bypassed Serbia either. The aim of this paper is to analyze economic and financial stability in the context of the corona virus pandemic, by presenting the measures of monetary, macroprudential and fiscal policy that Serbia has adequately and timely implemented. In addition, the focus of the paper is on presenting the results of these measures to indicate that the measures applied were necessary and properly implemented. The analysis showed that due to the achieved macroeconomic and financial stability in the years before the pandemic, sufficient fiscal space was created to react with a comprehensive package of measures and that the impact of the pandemic is largely amortized.
Research Interests:
In the last few years, central banks have been exposed to new challenges and tasks that they need to face. One of those challenges is climate change, which directly affects the central bank's main goals, namely achieving and maintaining... more
In the last few years, central banks have been exposed to new challenges and tasks that they need to face. One of those challenges is climate change, which directly affects the central bank's main goals, namely achieving and maintaining price and financial stability. In order to fulfill the goals defined by the Paris Agreement, it is necessary for central banks to take a more active part in the fight against the consequences of climate change. This means that central banks are expected to adopt policies and strategies that will guide the financial sector to successfully manage the risks of climate change and encourage them to direct investments in clean technologies and low-carbon infrastructure. This would achieve sustainable economic development in the long term, which is based on the principle of reducing the risk of climate change, while at the same time preserving the environment.
Research Interests:
Research Interests:
Research Interests:
The financial sector procyclical behavior has played a crucial role in strengthening the impact of the 2007/2008 global financial crisis. In response, regulators have created a new set of measures aimed at encouraging banks to create... more
The financial sector procyclical behavior has played a crucial role in strengthening the impact of the 2007/2008 global financial crisis. In response, regulators have created a new set of measures aimed at encouraging banks to create capital reserves as a precaution in "good times" and to loosen those capital reserves in "bad times", making the financial sector more stable. Countercyclical capital buffer is being introduced to enable sustainable lending to the economy in a period of declining economic activity and increase the resilience of the banking system, and reduce the possibility of financial crises and their intensity. The aim of this paper is to present countercyclical capital buffer in Serbia, indicators for assessing potential changes of the countercyclical capital buffer rate, as well as recommendations for improving this instrument.
Research Interests:
Research Interests:
Central Bank digital currencies are a digital challenge to the international monetary and financial system. Since the development of cryptocurrency, such as bitcoin, the modern world has faced the possibility of digital technological... more
Central Bank digital currencies are a digital challenge to the international monetary and financial system. Since the development of cryptocurrency, such as bitcoin, the modern world has faced the possibility of digital technological transformation and providing a digital form of payment for the economy and the household. In addition, the announcement of a digital currency that would have a global reach, such as the Libre issued by the social network Facebook, raised questions about legal and regulatory safeguards, financial stability, and the role of the digital currency in society. All this influenced the leading central banks to recognize the need to conduct a detailed analysis of the possibilities of issuing digital currency of the central bank, which would be a supplement to the cash and non-cash form of payment. These analyzes include considering the advantages and disadvantages of that currency, determining its design and technological solution, as well as the necessary regul...
Research Interests:
The aim of this paper is to analyze the process of implementing reforms in the bank lending market and its consequences. During the global financial crisis of 2007/2008, there was a decrease in confidence and thus a decline in the... more
The aim of this paper is to analyze the process of implementing reforms in the bank lending market and its consequences. During the global financial crisis of 2007/2008, there was a decrease in confidence and thus a decline in the turnover in the bank lending market. Consequently, the benchmark interest rates did not present the conditions for lending funds between banks, but were a reflection of manipulative actions by participants. This reduced liquidity in the bank lending market, as well as the unreliability of the methods of calculating benchmark interest rates, became a source of financial vulnerability and endangering the stability and security of operations for all participants in the financial market. For this reason, in 2012, the process of reforming benchmark interest rates at the global level began, which represents the most significant change in the global financial market in recent history. The reforms were implemented with the aim of increasing transparency in the calculation of benchmark interest rates, which increases their reliability of calculation and prevents the possibility of manipulation while protecting investors and users of all financial services. Of great importance is the analysis of the consequences of benchmark reforms and the impact on all participants in the financial market.
Research Interests:
Public debt management is a challenge for any country that wants to achieve and maintain stable public finances, because the financial strength of a particular country is reflected in the sustainability of financing public debt... more
Public debt management is a challenge for any country that wants to achieve and maintain stable public finances, because the financial strength of a particular country is reflected in the sustainability of financing public debt obligations. Public debt management should enable the analysis of key macroeconomic indicators (such as gross domestic product, public finances, country investment rating and many others) to look at costs and risks, but also market conditions that affect the level and structure of public debt. In Serbia, good coordination of monetary and fiscal policy measures, as well as the implementation of fiscal consolidation measures in the previous period, contributed to lower borrowing costs in the domestic and international financial markets,
while reducing premium risks. The sustainability of public finances was not endangered even during the COVID-19 risk pandemic, and Serbia's public debt remained below 60% of the gross domestic product as required by the Maastricht criteria. The use of hedging instruments, extension of the maturity of issued securities and a more favorable
currency structure of public debt contributed to this.
while reducing premium risks. The sustainability of public finances was not endangered even during the COVID-19 risk pandemic, and Serbia's public debt remained below 60% of the gross domestic product as required by the Maastricht criteria. The use of hedging instruments, extension of the maturity of issued securities and a more favorable
currency structure of public debt contributed to this.
Research Interests:
Central bank digital currencies represent a digital challenge to the international monetary and financial system. Since the development of cryptocurrency, such as bitcoin, the modern world has faced the possibility of digital... more
Central bank digital currencies represent a digital challenge to the international monetary and financial system. Since the development of cryptocurrency, such as bitcoin, the modern world has faced the possibility of digital technological transformation and providing a digital form of payment for the economy and the household. In addition, the announcement of a digital currency that would have a global reach, such as the Libre issued by the social network Facebook, raised questions about legal and regulatory safeguards, financial stability and the role of the digital currency in society. All this influenced the leading central banks to recognize the need to conduct a detailed analysis of the possibilities of issuing digital currency of the central bank, which would be a supplement to the cash and non-cash form of payment. These analyzes include considering the advantages and disadvantages of that currency, determining its design and technological solution, as well as the necessary regulatory adjustments. In the coming period, we will witness a technological transformation in the operations of central banks, which, as before, should take care of preserving price and financial stability as its main goals, but also respond to new challenges of digital business.
Research Interests:
The aim of this paper is to present the costs and benefits of applying dollarization. The most common reason for accepting, in whole or in part, a foreign currency is the presence of a high and volatile inflation rate, which is followed... more
The aim of this paper is to present the costs and benefits of applying dollarization. The most common reason for accepting, in whole or in part, a foreign currency is the presence of a high and volatile inflation
rate, which is followed by the significant volatility of the exchange rate, as well as a distorted confidence in its own currency. Likewise, highly dollarized countries most often characterized by a lower level of
the development of the financial market. Dollarization contributes to lowering the costs of transactions in international trade and to achieving the price and financial stability, as import inflation is lower than
domestic. On the other hand, the presence of full dollarization means a loss of seigniorage as the monetary authorities’ revenue from the printing of money, as well as the limitation of the implementation of the
lender’s function in the last instance. The results of the analysis indicate that, in the dollarized countries, there was a decrease in the inflation rate, macroeconomic stability was established, and financial integration was present as well. The analysis also showed that the loss of income from seigniorage, measured as a share in the gross domestic product, is not negligible, while the lender’s function in the latter instance can be compensated through the formation of stabilization funds and the conclusion of contracts with financial institutions.
rate, which is followed by the significant volatility of the exchange rate, as well as a distorted confidence in its own currency. Likewise, highly dollarized countries most often characterized by a lower level of
the development of the financial market. Dollarization contributes to lowering the costs of transactions in international trade and to achieving the price and financial stability, as import inflation is lower than
domestic. On the other hand, the presence of full dollarization means a loss of seigniorage as the monetary authorities’ revenue from the printing of money, as well as the limitation of the implementation of the
lender’s function in the last instance. The results of the analysis indicate that, in the dollarized countries, there was a decrease in the inflation rate, macroeconomic stability was established, and financial integration was present as well. The analysis also showed that the loss of income from seigniorage, measured as a share in the gross domestic product, is not negligible, while the lender’s function in the latter instance can be compensated through the formation of stabilization funds and the conclusion of contracts with financial institutions.
Research Interests:
The aim of this paper is to analyse all capital buffers that are currently applied in Serbia. Regulation that transposes Basel III regulatory standards in Serbia was adopted in December 2016. These buffers increase the resilience of banks... more
The aim of this paper is to analyse all capital buffers that are currently applied in Serbia. Regulation that transposes Basel III regulatory standards in Serbia was adopted in December 2016. These buffers increase the resilience of banks to losses, reduce excessive or underestimated exposures and restrict the distribution of capital. An assessment of the long-term trend of the credit-to-GDP ratio is based on using a one-sided Hodrick-Prescott filter and the selected value of the parameter λ equals 400000. Also, this paper used the following methods of research: inductive and deductive methods, methods of analysis and synthesis, classification method and the method of comparison. Analysis has shown that capital buffers that are currently applied in Serbia are fully harmonized with European Union regulations and international best practices.
Research Interests:
The strong rise of the cryptocurrency market and its popularity in the world have opened numerous dilemmas about their potentials, advantages, and risks. The continuously increasing popularity of cryptocurrency redefines the future of the... more
The strong rise of the cryptocurrency market and its popularity in the world have opened numerous dilemmas about their potentials, advantages, and risks. The continuously increasing popularity of
cryptocurrency redefines the future of the financial industry because at the heart of cryptocurrency is a rich history of innovation.
The astonishing growth in the number of cryptocurrencies and their market capitalization is accompanied by the growth of the global
popularity of cryptocurrencies and their use in the world of economy and finance. However, on the other hand, regulators' concerns about
possible threats and risks that may be posed by the wider use of cryptocurrencies and blockchain technology are also growing. The aim of this research is to assess the rise of cryptocurrencies, existing regulatory practices, and regulatory perspectives related to cryptocurrencies in Serbia.
cryptocurrency redefines the future of the financial industry because at the heart of cryptocurrency is a rich history of innovation.
The astonishing growth in the number of cryptocurrencies and their market capitalization is accompanied by the growth of the global
popularity of cryptocurrencies and their use in the world of economy and finance. However, on the other hand, regulators' concerns about
possible threats and risks that may be posed by the wider use of cryptocurrencies and blockchain technology are also growing. The aim of this research is to assess the rise of cryptocurrencies, existing regulatory practices, and regulatory perspectives related to cryptocurrencies in Serbia.
Research Interests:
Climate changes nowadays present a topic of huge importance taking into account its influence on conducting monetary and fiscal policy, achieving and improving financial stability, but also it is a concern for regulators and supervisors.... more
Climate changes nowadays present a topic of huge importance taking into account its influence on conducting monetary and fiscal policy, achieving and improving financial stability, but also it is a concern for regulators and supervisors. In order to have an appropriate reaction, it is necessary to identify risk from climate changes in a timely manner. Three categories of climate-related risks can be identified: 1) physical
risks which are associated with more frequent severe weather events and permanent changes in the environment, 2) transition risks that represent the policies and technological changes needed to achieve a greener economy, and 3) liability risk which represents the impacts that could arise tomorrow if parties who have suffered loss or damage from the effects of climate change seek compensation from those they hold
responsible. As a way to achieve satisfactory results in the fight against climate change risks, the financial institutions developed climate change risk management approaches, which include a variety of methods and instruments. The aim of this paper is the presentation of impact and implication regarding climate change regulations, identification of the risks and its management approaches, as well as economic cost and
proposals for future action
risks which are associated with more frequent severe weather events and permanent changes in the environment, 2) transition risks that represent the policies and technological changes needed to achieve a greener economy, and 3) liability risk which represents the impacts that could arise tomorrow if parties who have suffered loss or damage from the effects of climate change seek compensation from those they hold
responsible. As a way to achieve satisfactory results in the fight against climate change risks, the financial institutions developed climate change risk management approaches, which include a variety of methods and instruments. The aim of this paper is the presentation of impact and implication regarding climate change regulations, identification of the risks and its management approaches, as well as economic cost and
proposals for future action
Research Interests:
The goal of the paper is to present the intervention strategies used by central banks in order to influence the value of the domestic currency, transparency versus discretion when it comes to publishing data about FX intervention and the... more
The goal of the paper is to present the intervention strategies used by central banks in order to influence the value of the domestic currency, transparency versus discretion when it comes to publishing data about FX intervention and the cost and effectiveness of intervention. It is rarely that nowadays countries allow for an exchange rate to be formed on the market basis through the effects of supply and demand for foreign exchange on the foreign exchange market. The central bank buys or sells a foreign currency in the foreign exchange market in order to increase or decrease the value of its national currency in comparison to the foreign currency. The reasons for the intervention are the reduction of short-term oscillations of the exchange rate, the impact at the level of foreign exchange reserves, as well as the maintaining the price and financial stability as the ultimate goal of most central banks. The paper will present intervention strategies on foreign exchange market, which involves the implementation of interventions in the market of options, forward, foreign currency repo and foreign currency swaps. Then, on the spot market, interventions using an auction, as well as the application of foreign currency indexed certificates.
Research Interests:
In January 1999, the euro was introduced as the common currency of the eurozone member states, which is used today by more than 340 million Europeans. By introducing the common currency, a monetary union has been created, which in its... more
In January 1999, the euro was introduced as the common currency of the eurozone member states, which is used today by more than 340 million Europeans. By introducing the common currency, a monetary union has been created, which in its twenty years of existence has had its ups and downs. The biggest challenge so far has been the global financial crisis of 2008, with which most of the eurozone countries have successfully fought. Since its introduction, the euro has become the second most important currency, after the US dollar, in the structure of international reserves, contributing to the reduction of transaction costs in trade through the creation of a single market, but also facilitated
the convergence of monetary policies of eurozone member countries. In the first twenty years of its existence, the euro has proven to be a relatively stable currency in which its holders have confidence.
The European Central Bank, together with the central banks of the eurozone member countries, has created a monetary system that has confidence in the common currency by preserving its value and
continuing work to achieve and ensure the eurozone's financial and price stability.
the convergence of monetary policies of eurozone member countries. In the first twenty years of its existence, the euro has proven to be a relatively stable currency in which its holders have confidence.
The European Central Bank, together with the central banks of the eurozone member countries, has created a monetary system that has confidence in the common currency by preserving its value and
continuing work to achieve and ensure the eurozone's financial and price stability.
Research Interests:
The coronavirus disease 2019, recognizable under the abbreviation Covid-19, is an infectious disease caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease appeared in Wuhan, China in December 2019, and... more
The coronavirus disease 2019, recognizable under the abbreviation
Covid-19, is an infectious disease caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease appeared in Wuhan, China in December 2019, and then spread to the entire world. The imposed measures of isolation and social distancing have led to a reduction in the volume and, in many cases, a complete cessation of economic activity in many industries. In order to remedy the effects of the coronavirus, the National Bank of Serbia and the Ministry of Finance, each in their respective jurisdiction, have adopted a set of measures. The National Bank of Serbia lowered the key reference rate to support credit and economic growth, then provided additional dinar and foreign currency liquidity to the banking sector, through EUR/RSD swaps and repo auctions, and made decisions prescribing a moratorium on
debt payments. The Ministry of Finance has adopted a The Program of Economic Measures for Reducing the Negative Effects Caused by the Covid-19 Pandemic and Supporting the Serbian Economy. The Program includes tax policy measures, direct assistance to the private sector, measures to preserve liquidity for the private sector and other measures.
Covid-19, is an infectious disease caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease appeared in Wuhan, China in December 2019, and then spread to the entire world. The imposed measures of isolation and social distancing have led to a reduction in the volume and, in many cases, a complete cessation of economic activity in many industries. In order to remedy the effects of the coronavirus, the National Bank of Serbia and the Ministry of Finance, each in their respective jurisdiction, have adopted a set of measures. The National Bank of Serbia lowered the key reference rate to support credit and economic growth, then provided additional dinar and foreign currency liquidity to the banking sector, through EUR/RSD swaps and repo auctions, and made decisions prescribing a moratorium on
debt payments. The Ministry of Finance has adopted a The Program of Economic Measures for Reducing the Negative Effects Caused by the Covid-19 Pandemic and Supporting the Serbian Economy. The Program includes tax policy measures, direct assistance to the private sector, measures to preserve liquidity for the private sector and other measures.
Research Interests:
The aim of this paper is the presentation of all available investment possibilities of the household sector in Serbia. The level of these investments is defined by the level of disposable income, financial literacy, investment... more
The aim of this paper is the presentation of all available investment possibilities of the
household sector in Serbia. The level of these investments is defined by the level of disposable
income, financial literacy, investment alternatives and the development of the
financial market and its instruments. Most of the investments in the household sector
in Serbia are directed in savings, mainly in foreign currency savings. Other possibilities
including investment in different types of bonds, but also an investment in stock and
investment funds and other types of savings like voluntary pension funds and life insurance.
The main limitation of the household investment possibilities in Serbia is the capital
market which is shallow and future activities should be focused on its development.
Capital markets can play a strong role in economic growth and provide financing for the
state and the private sector by offering access to domestic and international financial
resources. The primary function of capital markets is therefore to create the connection
between various types of investors, such as households, voluntary pension funds, insurance
companies, commercial banks, and foreign investors and different issuers, mainly
large and medium-sized real sector companies, financial sector and governments.
household sector in Serbia. The level of these investments is defined by the level of disposable
income, financial literacy, investment alternatives and the development of the
financial market and its instruments. Most of the investments in the household sector
in Serbia are directed in savings, mainly in foreign currency savings. Other possibilities
including investment in different types of bonds, but also an investment in stock and
investment funds and other types of savings like voluntary pension funds and life insurance.
The main limitation of the household investment possibilities in Serbia is the capital
market which is shallow and future activities should be focused on its development.
Capital markets can play a strong role in economic growth and provide financing for the
state and the private sector by offering access to domestic and international financial
resources. The primary function of capital markets is therefore to create the connection
between various types of investors, such as households, voluntary pension funds, insurance
companies, commercial banks, and foreign investors and different issuers, mainly
large and medium-sized real sector companies, financial sector and governments.
Research Interests:
Inflation targeting, in addition to targeting monetary aggregates, exchange rates or a combination of the previously mentioned monetary policy regimes, is available to the monetary authorities in the choice of monetary policy strategy.In... more
Inflation targeting, in addition to targeting monetary aggregates, exchange rates or a combination of the previously mentioned monetary policy regimes, is available to the monetary authorities in the choice of monetary policy strategy.In addition, the ultimate goal of applying monetary policy is price and financial stability. The aim of this paper is to compare the international experience in the implementation of inflation targeting. In this paper, we will present operational approaches to targeting inflation and the advantages and disadvantages of applying this strategy. In addition, the focus of the analysis is in the presentation of inflation targeting in the central banks of the Czech Republic, Poland, and Hungary. These three countries have been selected because, like the National Bank of Serbia, they apply inflation targeting and a flexible exchange rate. This comparison is recommended in order to see the lessons and experiences in implementing the mentioned strategy in the analyzed countries, which can be the basis for improving the monetary policy of the National Bank of Serbia.
Research Interests:
Inflation expectations are very important when it comes to monetary policy and its decisions. In countries which are applying inflation targeting, inflation expectations reflect prediction of economic agents of movement of inflation rate... more
Inflation expectations are very important when it comes to monetary policy and its decisions. In countries which are applying inflation targeting, inflation expectations reflect prediction of economic agents of movement of inflation rate in mid and long term. Anchored inflation expectations and their movements within target tolerance band are pointing to effectiveness of the inflation targeting strategy. Consistent with the best international practice, after introducing the inflation targeting regime in January 2009, the National Bank of Serbia began monitoring and analysing inflation expectations of economic agents (financial sector, corporate sector, trade unions, and households). The aim of this paper is to analyse inflation expectations in Serbia, but also to give a comparative analysis of inflation expectation of other countries which are using inflation targeting and floating exchange rate, as is the case of the National Bank of Serbia.
Research Interests:
The main focus of this paper is presentation of non-standard monetary policy measures of selected central banks. The banks which are subject of analysis are Federal Reserve Bank, European Central Bank, Bank of England and Bank... more
The main focus of this paper is presentation of non-standard monetary policy measures of selected central banks. The banks which are subject of analysis are Federal Reserve Bank, European Central Bank, Bank of England and Bank of Japan. All the aforementioned central banks have begun to apply non-standard monetary policy measures since the global financial and economic crisis, which has led that inflation rate in a long-term be below the target level.In case of the Federal Reserve Bank non-standard policy actions were implementing to put downward pressure on real longer‐term interest rates and more generally to improve overall financial and economic conditions. The European Central Bank goal in using non-standard monetary policy is to return inflation rate to levels below, but close to, 2% over the medium term, while in case of the Bank of England it was response to the North Atlantic banking crisis and to a sharp downturn in domestic economic prospects. The Bank of Japan aim is to fight against deflation and to reach inflation target of 2%.
Research Interests:
Development and breakthrough of information and communication technologies in all spheres and aspects significantly changed the way of conducting business. Digital transformation is not an option for organizations, no matter of their... more
Development and breakthrough of information and communication technologies in all spheres and aspects significantly changed the way of conducting business. Digital transformation is not an option for organizations, no matter of their size, industry, maturity, number of employees, customers and so on. In order to survive and stay competitive in digital age, organizations need to be agile, flexible, ready to adjust on rapid changes in the business environment and create new values for customers. Traditional banks recognized all benefits and potentials reflected in usage of new digital technologies. Their focus is shifted on simplification of providing service on anytime in any place to potential customers. Through adoption of Big Data concept and customer-centric approach, banks are among those organizations which widely use new technologies in digital age with the aim to create and sustain competitive advantage. Banking industry is obviously changed and significantly reshaped by digitalization process. In this paper is presented the case of DBS bank from Singapore, which made an extraordinary turnover in its business toward digital transformation and positioned itself as the leading digital bank in the world..
Research Interests:
Public debt management represents an important part of public finance in each economy and in most countries is in administrative authority within the Ministry of Finance. The Public Debt Administration is the holder of public debt policy,... more
Public debt management represents an important part of public finance in each economy and in most countries is in administrative authority within the Ministry of Finance. The Public Debt Administration is the holder of public debt policy, presenting one of the most important branches of macroeconomic policy and has stabilization and developmental function. The Public Debt Management determines the schedule, scope and currency structure of the security issuance in the domestic and international financial markets and directly affects the level of indebtedness of the country and the level of foreign exchange risk. The main objective of public debt management is to ensure that the government's financing needs and its payment obligations are met at the lowest possible cost over the medium to long run, consistent with a prudent degree of risk. Adequate public debt management is crucial in view of the severe macroeconomic consequences of non-enforcement of public debt and the potential expansion of instability to other sectors in an economy. All this indicates the need for an adequately setting up current and future public debt management strategy and the development of instruments to reduce borrowing costs and foreign exchange risk levels. The aim of this paper is to present public debt management in selected Central East Europe countries (Serbia, Hungary, Croatia, Albania and Slovenia) and to recommend further improvement of its public debt strategies.
Research Interests:
This paper investigate the application of the strategy of dinarisation in financial system of Serbia. National Bank of Serbia and the Government of the Republic of Serbia signed in March 2012 the Memorandum on the Strategy of... more
This paper investigate the application of the strategy of dinarisation in financial system of Serbia. National Bank of Serbia and the Government of the Republic of Serbia signed in March 2012 the Memorandum on the Strategy of Dinarisation of the Serbian Financial System and thus have defined goals, measures and activities to be undertaken in order to strengthen confidence in the national currency and its use in the financial system. National Bank of Serbia uses various measures and activities to increase the level of dinarisation, which can apply as measures of monetary policy, prudential measures and educational activities. Similarly, the Government of the Republic of Serbia implement measures and activities within its jurisdiction, which are based on the use of public debt management strategy which aim is to increase the participation of the Dinar in total public debt, then the approval of subsidized loans through programs in which credits are mainly represented in Dinars, then stimulating tax policies to support the Dinar savings and improving the institutional and regulatory environment that will contribute to further development of the primary and secondary markets of purely Dinar securities.
Research Interests:
The aim of this paper is to present the costs and benefits of applying dollarization. The most common reason for accepting, in whole or in part, a foreign currency is the presence of a high and volatile inflation rate, which is followed... more
The aim of this paper is to present the costs and benefits of applying dollarization. The most common reason for accepting, in whole or in part, a foreign currency is the presence of a high and volatile inflation rate, which is followed by the significant volatility of the exchange rate, as well as a distorted confidence in its own currency. Likewise, highly dollarized countries most often characterized by a lower level of the development of the financial market. Dollarization contributes to lowering the costs of transactions in international trade and to achieving the price and financial stability, as import inflation is lower than domestic. On the other hand, the presence of full dollarization means a loss of seigniorage as the monetary authorities’ revenue from the printing of money, as well as the limitation of the implementation of the lender’s function in the last instance. The results of the analysis indicate that, in the dollarized countries, there was a decrease in the inflation rate, macroeconomic stability was established, and financial integration was present as well. The analysis also showed that the loss of income from seigniorage, measured as a share in the gross domestic product, is not negligible, while the lender’s function in the latter instance can be compensated through the formation of stabilization funds and the conclusion of contracts with financial institutions.
Research Interests:
Main goals of monetary policy of almost all central banks are to provide monetary and financial stability. As a way to achieve these goals central banks manages money and interest rates so as to accomplish a low, stable and predictable... more
Main goals of monetary policy of almost all central banks are to provide monetary and financial stability. As a way to achieve these goals central banks manages money and interest rates so as to accomplish a low, stable and predictable inflation rate, which creates an environment conducive to sustainable economic development and employment growth. In conducting monetary policy central bank can use different instrument, such as reference rate, standing facility, required reserves and interventions in the foreign exchange market. This paper analyzes three cases of central bank which were using ex-change rate as additional instrument of monetary policy. In case of Central bank of the Czech Republic exchange rate was used to prevent deflation, in case of the Swiss Central Bank as a way to deal with massive overvaluation of the Swiss franc which was posing an acute threat to the Swiss economy and carries the risk of a deflationary development and in case of Bank of Israel as a way to increase its foreign exchange reserves by purchasing foreign currency in the open market. Main finding of the paper is that all analyzed central banks, which were using exchange rate as additional instrument, did not jeopardize price and financial stability as their main monetary policy objective.
Research Interests:
In December 2008, the Monetary Policy Committee of the National Bank of Serbia adopted the Memorandum on Inflation Targeting as Monetary Strategy, which defines the formal implementation of the inflation targeting regime as of 1 January... more
In December 2008, the Monetary Policy Committee of the National Bank of Serbia adopted the Memorandum on Inflation Targeting as Monetary Strategy, which defines the formal implementation of the inflation targeting regime as of 1 January 2009. In accordance with that monetary strategy the National Bank of Serbia introduced the managed floating exchange rate. This exchange rate regime means that the exchange rate is formed freely, under the influence of supply and demand on the interbank foreign exchange market, and that the National Bank of Serbia applies foreign exchange interventions in order to prevent excessive short-term daily fluctuations in the exchange rate of the dinar against the euro. In doing so, the central bank strives to achieve and preserve the financial and price stability and relative stability of the dinar exchange rate. The movements in the value of the exchange rate of the dinar against the euro are affected by the factors of domestic origin, such as the activities of domestic and foreign enterprises and banks, but also external factors, such as the impact of the measures introduced by major global central banks, geopolitical tensions and changes in the price of oil and other products. The aim of the paper is to present the functioning of the foreign exchange market in Serbia, the types of transactions, the reporting system, formation and announcement of the official middle exchange rate of the dinar against the euro, types of foreign exchange interventions and foreign exchange risk protection instruments.
Research Interests:
The paper focuses on analysing monetary policy in Serbia. The National Bank of Serbia chose inflation targeting, which sets price stability as the main objective of monetary policy. To achieve this goal,... more
The paper focuses on analysing monetary policy in Serbia. The National Bank of Serbia chose inflation targeting, which sets price stability as the main objective of monetary policy. To achieve this goal, the central bank uses different monetary policy instruments which analysis can provide us with the understanding of the main directions of their actions but also of the limitations of its application. Only through improvement of both instruments and monetary policy the central bank will create a better foundation for achieving monetary stability. In addition, the implementation of ex-change rate policy is entrusted to the National Bank of Serbia, as the main regulator of the financial system. A mere use of managed floating exchange rate, as the chosen exchange rate regime, is an appropriate solution in the current economic circumstances and in accordance with the desired objective of monetary policy.