FINANCIAL MARKETS IN BOSNIA AND HERZEGOVINA: CURRENT SITUATION AND TRENDS
Published: 28 Nov 2016
Abstract: The financial system of Bosnia and Herzegovina is a bank-dominated system. In the financial system there are two stock exchanges together with banks. Financial markets in Bosnia and Herzegovina are thin and illiquid. Authors in this paper will analyse the situation in financial markets through value of stock exchanges index on time series in the period 2005-2015. Changes in the economic and financial environment have an impact on trends in financial markets. So, the second aim of this paper is to examine the correlation between changes in economic measured by indicators (GDP, unemployment rate, inflation, monetary aggregates and interest rate on loans and deposits) and trends in financial markets.
Keywords: financial markets, state, trends, financial crisis, bosnia and herzegovina
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