Abstract
Evaluation of business performance and financial position of commercial banks play an important role in making financial management decisions, because they support the assessment of the risks and potential benefits of planning perspective, the performance of these financial institutions. The main aim of this research is to make recommendations for the development of the system of financial indicators based on study and generalization of scientific publications, analysis and banking practices in the area of performance evaluation in order to apply for the assessment of the financial position of commercial banks. The focus on this research are financial ratios that have the dominant role in the quantitative analysis of the financial performance of banks. In order to achieve the objective of this study pointed out the following tasks: to explore the essence of financial ratios and show their role in the performance of commercial banks; provide critical assessment approaches to evaluating performance indicators which are used in banks which operate on the Serbian market; develop recommendations for the creation of a system of financial indicators for assessing the business of commercial banks and its practical application.
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