FINANCIAL ANALYSIS AND RATING OF THE BANKS IN REPUBLIC OF SRPSKA IN THE TIME OF THE WORLD FINANCIAL CRISIS

Form period to period banks in Republic of Srpska are showing better results. The total and interests assets, incomes form the interests and amends, as well as clear profit, are showing growth on annual rates which are significantly less from the average annual rates in the region. Comparing to the banks in the region, most of the banks in Republic of Srpska has much smaller yield power in the sense of return on average capital. The crisis of the banking system in a State indicates the inability of banks to pay in given moment in its entirety its obligations. Banking sector of the Republic of Srpska, which consist of ten banks, is not yet significantly shaken with the financial crisis. Effects of the financial crisis on the banks in Republic of Srpska will be significantly measured in the next financial year. Measures of the banking market regulators, Banking Agency and Central Bank of the BiH (as issuing bank), as well as the measures of the Government of the Republic of Srpska, can significantly affect the reduction of negative consequences of the global crisis. Combination of absolute and relative indicators in paper shows the ratings model, in which we analyzed the performance of the banks in Republic of Srpska