Do Serbian banks make optimal corporate credit decisions?

In the matter of adequate Serbian banks’ corporate credit decision-making process and fulfilment of customers’ needs, this is a topic that involves a large number of potential and current banks’ clients. Credit risk management theory proposes optimal combination of hard and soft facts for making adequate credit decision. The aim of the article is to stress that financial indicators should be analysed in the context of a company’s overall business model on the sample of ten typical Serbian companies in the period of three fiscal years. Research results confirm that indicators such as turnover, number of employees, EBITDA and a company’s equity are not enough to make final credit decision – approval or rejection. Furthermore, Serbian banks haven’t made optimal credit decisions. However, new players on the financial market will have an impact on a company’s business and structure of financial reports.