Integration of financial systems of western Balkan countries into the european financial system

Th? ?mp?ct of ?nt?rn?t?on?l f?n?nc??l r?port?ng of SMEs on ?conom?c p?rform?nc? cont?nu?s to b? on? of th? most d?b?t?d ?ssu?s ?mong ?nt?rn?t?on?l ?conom?sts. Th?or?t?c?l mod?ls h?v? ?d?nt?f??d ? numb?r of ch?nn?ls through wh?ch ?nt?rn?t?on?l f?n?nc??l r?port?ng of SMEs c?n promot? ?conom?c growth ?nd ?conom?c d?v?lopm?nt ?n d?v?lop?ng countr??s ?nd countr??s ?n tr?ns?t?on. How?v?r, ?n sp?t? of ?ts b?n?f?ts, f?n?nc??l r?port?ng of SMEs c?n ?lso b? d?ng?rous, ?s ?t h?s b??n w?tn?ss?d ?n m?ny r?c?nt f?n?nc??l cr?s?s. In f?ct, th?r? ?r? som? ?v?d?nc?s th?t f?n?nc??l glob?l?s?t?on l??ds to b?tt?r m?cro?conom?c outcom?s only wh?n c?rt??n “thr?shold cond?t?ons” ?r? m?t. Th?r?for?, th?s p?p?r d?scuss?s th? pot?nt??l b?n?f?ts ?nd pot?nt??l costs of f?n?nc??l r?port?ng, wh?ch could f?c? tr?ns?t?on countr??s from W?st?rn B?lk?ns wh?l? ?nt?gr?t?ng th??r f?n?nc??l syst?ms ?nto th? Europ??n f?n?nc??l syst?m. S?nc? th? f?n?nc??l s?ctor of W?st?rn B?lk?n countr??s ?s ch?r?ct?r?s?d by ?n ?ncr??s?ng pr?s?nc? of for??gn b?nk, th?s p?p?r po?nts out th? pot?nt??l ?dv?nt?g?s ?nd ? poss?bl? “d?ng?r” of th? ?xc?ss?v? pr?s?nc? of for??gn b?nks ?n th? host-country. Th?s p?p?r conclud?s w?th th? ?d?? th?t ?t ?s ?mport?nt to d?t?rm?n? th? opt?m?l l?v?l of for??gn b?nks p?rt?c?p?t?on ?n loc?l b?nk?ng s?ctor ?nd th?t f?n?nc??l r?port?ng of SMEs should b? ?ppro?ch?d c?ut?ously, w?th good ?nst?tut?ons ?nd m?cro?conom?c fr?m?works v??w?d ?s ?mport?nt pr?cond?t?ons.