ROLE OF BANKS IN SUSTAINABLE FUTURE OF BOSNIA AND HERZEGOVINA

Bosnia and Herzegovina’s (BiH) sustainable future assume proactive role of financial sector, side by private sector, government, and all other relevant sector. The country is making slow progress in its commitment to sustainable development, with the conventional and noninnovative financial sector. The relationship between stock market capitalization and banking sector capitalization in financing sustainable growth is complex, where neither does not have straightforward impact on economic growth. Overall conclusion in mainstream literature is that both stock markets and banking sector play significant roles in financing sustainable growth, but their impacts can vary depending on other factors. This paper assumes that role of banks in achieving Sustainable Development Goal in Bosnia and Herzegovina is and will be important. K mean clustering of all countries based on data from 1990 based on CO2 emissions per capita and deposits in banks in percentages of GDP, divides world in two big clusters, where significant number of countries is not classified in neither cluster. Only neighboring country of BiH that is in same cluster is Montenegro.