EFFECTS OF THE 2008 GLOBAL RECESSION AND THE COVID-19 PANDEMIC ON FINANCIAL STABILITY OF THE REPUBLIC OF SERBIA

Abstract

A series of financial crises in the last thirty years, among other things, serves as a reminder of the importance of financial stability. Therefore, preserving the financial system's stability, especially its most important segment - the banking sector, is the principal goal and the most significant challenge faced by the macro-prudential and economic leaders. The benefits of financial stability are manifold, starting from creating favourable circumstances for business and providing security for participants in the financial market to increased efficiency of financial intermediaries and better allocation of limited resources. Also, the greater resilience of the financial system and its ability to absorb financial and economic disruptions facilitates the achievement of other economic policy objectives. Starting from the position that financial stability is one of the fundamental preconditions for sustainable economic growth, this paper aims to analyse and assess the impacts of the global 2008 recession and the COVID-19 pandemic on the stability of the Serbian financial system.