THE FUTURE DEVELOPMENT OF THE SERVICE SECTOR AND IT’S IMPACT ON THE BANKING INDUSTRY. THE CASE OF MACEDONIA
Journal Title: EMC Review: Časopis za ekonomiju i tržišne komunikacije - Year 2014, Vol 7, Issue 1
Abstract
The aim of this paper is to elaborate the importance of service sector and how its future development will affect the banking industry in the Republic of Macedonia. We live in a service society, where services sector represents more than two-thirds of economic activity and four-fifths of growth in recent years in OECD countries. This trend is evident in Macedonia also, where the service sector represents around 60% from the economic activity. Stil, because of the positive correlation with the economic development, further development will result with growth of the service sector. Further liberalization, removing product market barriers still limiting competition in various sub-sectors, allowing more FDI are factors that are indicated by experts that can contribute for further development of the service sector.Regarding banking industry in Macedonia, service sector has the biggest share in the credit portfolio. Especialy this is due of the high exposure towards trade.Comparative analysis with developed countries shows that the share of exposure towards service sector is greather in Macedonia. This is mainly due of the lower risk of this credit portfolio, whose average riskiness is below the industry sector and agriculture.Also, in deficiency of strong industrial sector who can export its goods, Macedonian banks are turned towards wholesale and retail trade sectors. So it is expected with growth of GDP per capita in future banks to increase the loan portfolio of industry and in the same time to decrease the share of trade sector portfolio in total service portfolio.
Authors and Affiliations
Evica Delova-Jolevska, Ilija Andovski
Keywords
Related Articles
- EP ID EP341994
- DOI -
- Views 76
- Downloads 0
VERTIKALNI MENADŽMENT U FUNKCIJI PRODAJE -VERTICAL MANAGEMENT IN THE FUNCTION OF SALES
In this paper we have exposed the managerial vertical integration between production and sales companies in the functional marketing channels in order to successfully meet the needs of the end customer and higher profits...
THE IMPACT OF THE NON-PERFORMING LOANS TO BANKS’PERFORMANCE: THE CASE OF THE REPUBLIC OF MACEDONIA
The paper investigates the relationship between non-performing loans and the basic indicators for banks’performance. The analysis was conducted among the banking sector in the Republic of Macedonia for the period 2007-20...
DETERMINANTE KREDITNOG RASTA U BANKARSKOM SEKTORU BOSNE I HERCEGOVINE-DETERMINANTS OF CREDIT GROWTH IN BANKING SECTOR OF BOSNIA AND HERZEGOVINA
Credit growth is function of several variables, which are from the domestic banks point of view internal and external. NPL and deposits, on bank level, nominal GDP growth, and inflation have biggest impact on credit grow...
OPTIMIZACIJA UPRAVLJANJA KOMERCIJALNIM AKTIVNOSTIMA AVIOKOMPANIJE - MANAGEMENT OPTIMISATION OF AIRLINES COMMERCIAL ACTIVITIES
Sustained implementation of the optimization processes of the airlines commercial activities is indispensable for timely and appropriate business decisions. Development of the commercial air transport make necessary the...
MJERENJE ETIČNOSTI U POSLOVNOM PONAŠANJU BANAKA: DVOJNI PRISTUP
U okviru elektronskog bankarstva poslednje decenije se razvija mobilno bankarstvo kao deo usluga koje banke nude klijentima preko korišćenja najsavremenijih mobilnih telefona i tablet uređaja. Ovaj vid bankarskih usluga...