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Foreign Investments in Banking Systems of Serbia and Western Balkan Countries 2012 http://ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai/record/2/3323 http://ttem.ba/volume-7-number-2/ Ž. Spalević М. Кнежевић Ж. Бјелајац Banking system and banks in one country and its economy are in close interrelation and defined by structure and character of property, social and political relations. Serbia, as the country that prefers membership in EU is involved in European integrations, beyond other things, through process of harmonization domestic with EU regulations in banking area. Banking system of Serbia is connected with financial flows in Europe. With enactment of The law on banks are created prerequisites for application highly defined world standards into banking system of Serbia. In Western Balkans countries, during past several years, a great progress has been made in banking system reforms, therefore in this paper are demonstrated achieved results of the conducted reform, not only in Serbia, but also in Bosnia and Herzegovina, Croatia and Slovenija. Author in this paper endeavors to demonstrate the significance and goals of foreign investments in Serbian banking system and Western Balkans countries, stressing that in this phase of banking sector development in Serbia there is interest expressed by strategic investors for taking over of the existing banks, as well as for the establishment of new ones, which will additionally improve the level of competitiveness in Serbian banking system. article 7 2 747 757 1840-1503 TTEM - Technics Technologies Education Management