COMPETITIVENESS OF FINANCIAL AND BANKING SYSTEM OF SERBIA IN TRANSITION PERIOD

The competitiveness of the economy, especially the financial system as its primary homogeneous and startup work is a fundamental prerequisite for economic recovery and prosperity of any country, including the Serbian economy, which is in the process of transition for nearly twenty-five years. On necessity of Serbia's economic recovery especially is intensively talked after 2000. If we want to stop lagging behind and finally, begin to catch up with the countries of the European Union, Serbia needs to seriously raise the competitiveness and production in the real sector. This can be achieved by a strong infusion of investment, which will be done through the financial system of the country. Therefore, it is necessary to raise the competitiveness of Serbia in the financial and banking system. The analysis is focused on functioning and raising the competitiveness of the financial and banking system, efficiency and capitalization of the banking sector of Serbia and the banking sector of Serbia and countries in the world and the region.