The financial crisis’ effects on banks’ efficiency in the Pozega and Slavonia County

In developed economies financial crises from 2007 have had significant influence on macro economy and bank’s profitability and stability across national economies. Like in other banking systems in Croatia in last few decades’ banks become larger and complex and had developed their business profiles through the wider usage of innovative financial techniques, instruments and information technologies. The aim of the paper is research the characteristics and volume of economic crisis in Croatia, the crises’ impact on the Croatia banking sector efficiency and profitability and the effect on banks’ profitability dominantly active in Pozega and Slavonia County. The research would be based on the representative sample of Pozega and Slavonia County clients (households and enterprises). So the paper will test next hypotheses: the influence of the economic crises on Slavonia economy, the quality of Slavonia banks loans portfolios, the categories in analyzed portfolios which are the most distorted through the crisis in the researched County. Research methodologies would consist mostly of the ratio analysis of the most used performance indicators like return on assets, return on equity, reservations, nonperforming loans, net income costs etc., their trends in last few years and future expectations on the values of used variables.