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The Influence of the Banking Sector Functions on Economic Activity in Macedonia

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  • Naumovska Elena
  • Jovanovski Kiril
  • Gockov Gorgji

    (Financial Management, Faculty of Economics, University ss. Cyril and Methodius, Skopje, R. Macedonia)

Abstract

The subject of this paper is the way in which the banking sector in Macedonia contributes to the economic growth by performing five basic functions: savings mobilization, risk diversification, resource allocation, corporate control and easing exchange. The basic purpose of this paper is, through assessment of the relative importance of each of the functions of the banking sector and analysis of the relationship existing between the banking sector intermediation and economic growth (as measured by GDP) to investigate the impact of the banking sector on the real sector performance in the Macedonia. According to the obtained results the paper provides conclusions for opportunities and directions for increasing the efficiency of the banking sector in the Republic of Macedonia.

Suggested Citation

  • Naumovska Elena & Jovanovski Kiril & Gockov Gorgji, 2015. "The Influence of the Banking Sector Functions on Economic Activity in Macedonia," Scientific Annals of Economics and Business, Sciendo, vol. 62(2), pages 208-221, July.
    • Handle: RePEc:vrs:aicuec:v:62:y:2015:i:2:p:208-221:n:5
    DOI: 10.1515/aicue-2015-0014
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    References listed on IDEAS

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