Search results

The economic and financial crisis, especially the sovereign debt crisis, discovered many deficiencies and weaknesses in the banking sector in the European Union (EU). The need for special surveillance and supervision of cross-border banking cooperation and termination of the toxic link between sovereign debt and banking sector have accelerated the process of forming and establishing a Banking Union (BU). An integrated financial framework has been established in which the European Central Bank (ECB) through the Single Supervisory Mechanism (SSM) has a key role and the responsibility for the overall supervision of the banking sector of the euro zone. The Single Resolution Mechanism (SRM) and schemes of the Single Deposit Guarantee Mechanism (SDGM) are under the national supervisory authorities while the European Banking Authority (EBA) is responsible for developing the Single Rules. From the new architecture is expected the preservation of the single market and a common currency, breaking “toxic connections” between sovereign debt and banks, mitigation and removal of financial instability and economic growth. The research shows that the BU together with the ECB in a certain sense, also contributes to the normalization of credit and financial conditions in the single mark. Estimates through SSM, conducted by the ECB and the EBA, during, 2014 and 2015 on 107 banks in 21 countries indicate progress toward solvency and resilience of the banking system of the euro area. Despite some initial success the entire project BU seems to have missed on opportunities, resulted in late reactions, and was too complex to be feasible. The political will of national governments to give up sovereignty over its banking sector and transfer competencies to the supranational institutions is a key factor in the success or failure of a BU. It seems so but past experience indicates that there is no political willingness to solve problems. Mainly most of the government avoids cleaning a hidden “skeleton in closets” due to lack of means for recapitalization while some are trying for loans from the ECB to help their banks. The ECB plays a key oversight role at the EU level and has too much power, which can cause risks caused by conflicting goals. The ECB is losing the role of the final refuge of liquidity, which is the main disadvantage of a BU. The SSM is susceptible to criticism due to difficulty in operation because of slow incorporation of European legislation into national law. Slow implementation carries risks of fragmentation of the market, regardless of the responsibility of the ECB. The financial capacity of the temporary agreement with the SRM is insufficient in solving the crisis of more banks while procedural application is complex and time-consuming. Planned backstop with a centralized resource is a resolution that is insufficient for solving the failure of big systemic banks, which are too big to bail. The heterogeneity of the existing Deposit Guarantee Schemes (DGS) and the banking systems of the member states of the euro zone caused controversy in terms of setting of common insurance schemes. The procedures for the recovery and resolution of critical banks are problematic.

The purpose of this paper is to investigate the impact of organizational justice on the ethical climate in organizations in Serbia.

In the study, 3,413 employees participated whose task was to assess the dimensions of organizational justice (procedural, distributive and interactional) as well as the dimensions of ethical climate (egoism, benevolence and principle).

The obtained results show that the dimensions of organizational justice are significant predictors of dimensions of ethical climate. The dimension of distributive justice significantly predicts the dimensions of egoism and principle, while the dimensions of procedural and interactional justice significantly predict the dimensions of benevolence and principle. Concerning the structure of the relationship between dimensions of organizational justice and ethical climate, the results also showed that there is intra-national diversity depending on the region of the Republic of Serbia where the organization operates. Ethical climate based on maximization of personal interest is more connected to economically more developed regions with a larger population, while ethical climate based on duties related to norms, laws, rules and policies characterizes less developed regions with a smaller population.

In the context of contemporary Serbian business surrounding, the obtained results are discussed regarding the possibilities for improvement of ethical climate, which should be accompanied and supported by the positive impact of organizational justice.