Special edition newsletter
DIARY OF SUCCESS - People who drive the business world
Vladimir Vasić, CEO of BBS Capital Investment Group: Serbia must develop the capital market to attract strategic investors
(Photo: Nemanja Potkonjak)
Through work in banks such as Societe Generale, Generali insurance, Triglav Invest, BNP Paribas and Sberbank, he gained a deep understanding of the market, but also realized where the greatest needs of the economy are. Today, he combines experience from the banking world with practical advice on financial literacy, risk management and long-term strategies, helping companies navigate a volatile economic environment.
In an interview for eKapija, Vasić analyzes the changes in the banking sector, the current economic situation in Serbia, challenges for the capital market and investment strategies, emphasizing the importance of financial literacy, risk management and long-term planning for sustainable development.
What was the crucial moment after which you decided to leave the big banking systems?
- The decisive moment came when I realized that my contribution within large systems was limited by their structure and slower acceptance of changes. Banks are stable institutions, but naturally more oriented to preserving the existing model than to innovation.
At the same time, small and medium-sized businesses increasingly expressed the need for expert guidance through the complex financial ecosystem. The assessment was that they could have a significantly greater impact by working directly with companies and entrepreneurs. On that idea, BBS Capital was born - as a bridge between the financial sector and the real economy.
How has the banking sector in Serbia changed over the past 10-15 years?
- In the past decade, the banking sector has become more stable, capital stronger and more technologically advanced. The regulatory framework has been significantly improved, and market consolidation has led to fewer, but larger and more resilient institutions.
However, such a structure also increased the conservatism of the sector. The focus is primarily on low-risk placements, while the segment of small and medium-sized enterprises still does not have adequate access to financing, which represents one of the key limiting factors of economic growth. Despite digitization, operational rigidity remains a challenge.
What advice do you give to citizens in the context of changes in interest rates, credit conditions and financial regulations?
- Financial decisions should be made with a clear understanding of risk, liquidity, and the real value of money.
- Savings: inflation reduces the real return, so diversification and more active management of personal finances is necessary.
- Loans: before committing, it is important to test the budget`s resistance to potential interest rate increases. The loan should be taken only with a clear and stable source of repayment.
- Investments: invest in products whose mechanism of operation the investor understands. For the majority of citizens, the most rational approach is a combination of savings, real estate and simple investment instruments.
In such conditions, financial literacy and risk management become a necessary part of the personal economic strategy.
Is it realistic to expect the development of capital markets and investment funds in Serbia?
- Development is realistic, but it requires simultaneous progress on several levels:
- predictable and supportive regulatory framework,
- greater degree of transparency and professionalism in corporate governance,
- increase in financial literacy among citizens and entrepreneurs.
Serbia is a distinctly bank-centric economy, with over 90% of economy financing through the banking sector. Without the development of the capital market, institutional investors and long-term financing instruments, one cannot expect accelerated growth or diversification of capital sources.
How will the current economic instability, inflation and uncertainty surrounding the energy market affect the Serbian financial market?
- Serbia, as a small and open economy, is highly exposed to energy price changes, global interest rates and geopolitical risks. In the coming period it is realistic to expect:
- extended period of higher borrowing costs,
- more stringent lending criteria, especially for the corporate sector,
- a slowdown in private investment,
- more pressure on public finances.
In such an environment, the financial sector`s focus will be on stability and liquidity. Access to financing will depend more and more on the quality of the balance sheet, the transparency of business operations and the professional preparation of projects.
What economic mistake or omission surprised you the most in the last period? What would you have done different?
- The most obvious failure is insufficient investment in institutional capacity, productivity and long-term development policies. Short-term measures that have a quick political effect but do not contribute to sustainable growth often dominate.
Another key problem is the high concentration of risk in a limited number of sectors and partners, which makes the system vulnerable to disruptions.
A strategic approach would have to include a predictable regulatory framework, relieving the economy and encouraging innovation and exports.
What is the biggest financial challenge for Serbia in the next 5-10 years and what strategy do you recommend?
- The biggest challenge is the combination of demographic trends, productivity, energy, investment in knowledge and the structure of the economy. Without the strengthening of productivity, a stable and diversified energy system, the retention of a qualified workforce and systematic investment in knowledge, sustainable economic growth will not be possible.
The recommended strategy is based on five key pillars:
- Institutional stability and predictable tax and investment framework.
- Development of sectors with high added value, including IT, energy, food processing and advanced industry.
- Energy security, through diversification of sources, modernization of infrastructure and investment in renewable energy sources.
- Professionalization of corporate management, including controlling, financial planning and application of international standards.
- Investment in knowledge as a strategic category, including funds for knowledge, funding of research and innovation, development of professional training and strengthening of cooperation between educational institutions and the economy.
Such an approach would enable sustainable long-term growth and attract capital that invests strategically rather than opportunistically.
Ivana Žikić
Click here to see the entire Special Edition Newsletter
"DIARY OF SUCCESS - People who drive the business world"
Back to newsletter