Measures in the first phase of banking harmonization are regulated by the
following four main EU Directives: First Banking Directive (77/780/EEC),
Directive on own funds (89/299/EEC), Directive on a solvency ratio (89/647/
EEC) and Directive on deposit-guarantee schemes (94/19/EEC). This article
discusses measures undertaken in the first phase of banking harmonization
with EU Legislation in Serbia and the results accomplished by these measures
and proposes some further steps that have to be implemented in order to
accelerate harmonization of the domestic financial system with EU standards.
The article analyses banking reform processes in Serbia so far, describes the
requirements of the four EU directives mentioned and compares domestic
legislation with them. The conclusion is that in Serbia’s financial reform the
initial positive results have been achieved, but the process has not yet been
completed and there are still various problems both at the level of the financial
system and at the level of specified financial institutions.
