TRENDS IN THE DEVELOPMENT OF FINANCIAL INNOVATIONS, DEREGULATION AND SELF-OVERSIGHT OF BANKS IN DEVELOPING COUNTRIES; THE EXAMPLE OF THE REPUBLIC OF SERBIA

Megatrend University in Belgrade. Maršala Tolbuhina 8, 11000 Beograd, Serbia,
Serbia

Belgrade Business and Arts Academy of Applied Studies, Kraljice Marije 73. Zvezdara, Belgrade
Serbia

The Academy of Vocational Studies of Southern Serbia, Department of Business Studies, based in Blace at Kralja Petra I 70
Serbia


Abstract

The trend of development of financial innovations, deregulation and self-supervision of banks in developing countries, the example of the Republic of Serbia can be followed up on already developed attitudes that have evidently dominated the last 30 or so years in the world. Namely, the use of new financial products was largely disastrous for the world economic and financial order. Such an observation from the macro-economic aspect had a bad effect, first of all, on a large number of weak, underdeveloped economies, such as the Republic of Serbia. The influence of the leading dominant country in the world since the mid-1980s, the USA, has had a negative impact on the economic systems of transition countries. This primarily refers to the negative impact of uncontrolled money printing, which in turn had a fundamental impact on the initiation of a chain of speculative transactions in the USA and then on the rest of the world. In addition, in the attempt to regulate the monetary policy in the USA, another big mistake was made, which was reflected in the support of the so-called self-control of banks. This is how the reality emerged in the most powerful economy, which has achieved relatively relaxed legal regulations for the control of hedge funds, in the 90s of the 20th century, which resulted in the sudden enrichment of these funds.

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