Economic Themes (2012) 50 (1) 8, 121-137
Jelena Ćirić, Vladimir Njegomir
Abstract: Eastern European countries, including former Yugoslav countries, have marked economic development rates much higher than they were in developed countries. Development was primarily based on foreign resources that were secured through donations, foreign direct investments or foreign banks’ loans. However, the achievement of sustainable economic growth cannot be feasible without the mobilisation of domestic financial savings that is done by institutional investors. Although they appeared later than banks, institutional investors as financial institutions considerably contribute to capital market’s deepening and development and by that they also facilitate economic development. We analyse the role of institutional investors, investment funds, pension funds and insurance companies, as sources of long-term financial resources for sustainable economic development. We denote their position in the financial system structure, parallels of their development in former Yugoslav countries, diverse impact of the world economic crisis on institutional investors, and specify reasons of their lesser successful emerging and business in the Serbian financial market.
Keywords: insurance companies; investment fund; pension fund; global financial crisis
THE REASONS FOR LESSER SUCCESS OF INSTITUTIONAL INVESTORS IN THE SERBIAN FINANCIAL MARKET
Jelena Ćirić, Vladimir Njegomir
Abstract: Eastern European countries, including former Yugoslav countries, have marked economic development rates much higher than they were in developed countries. Development was primarily based on foreign resources that were secured through donations, foreign direct investments or foreign banks’ loans. However, the achievement of sustainable economic growth cannot be feasible without the mobilisation of domestic financial savings that is done by institutional investors. Although they appeared later than banks, institutional investors as financial institutions considerably contribute to capital market’s deepening and development and by that they also facilitate economic development. We analyse the role of institutional investors, investment funds, pension funds and insurance companies, as sources of long-term financial resources for sustainable economic development. We denote their position in the financial system structure, parallels of their development in former Yugoslav countries, diverse impact of the world economic crisis on institutional investors, and specify reasons of their lesser successful emerging and business in the Serbian financial market.
Keywords: insurance companies; investment fund; pension fund; global financial crisis
