Abstract

The banking sector has a dominant role in the process of mediating and dispersing the finances of the economical subject with suffice towards the ones with a deficit. Although it is well known fact that the banking sector plays the major role in the enhancing and developing of a country’s economy, it is evident that this sector is under big influence of the changes within the financial environment-regarding the situation of the capital market on a global scale. If the banking sector functions efficiently, give loans to support the enterprises, it leads to bigger consumption-meaning that for the population of the country the banking sector is highly valued and trusted. The paper examines the structure and the profitability of the banking sector in Republic of Macedonia comparing with the banking sectors of some countries in the region.

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