6 The Banking System
This chapter discusses the structure of commercial banks, which include: internal banks, basic banks, united banks, and the Yugoslav Bank for International Economic Cooperation. The banking system includes two types of banks: commercial banks and savings and loan institutions. The role, functions, and structure of the banking system depend on the specific economic system of the country. The development and the changes in the economic system carried out in recent years have demanded an adequate readjustment of the financial system. The Yugoslav economic system represents a specific combination of the market and plan elements. The objectives of monetary-credit policy are achieved through a system of national banks which constitute the central bank system of Yugoslavia. All nine national banks act as an integrated central banking system. The basic objectives of monetary-credit policy, as an integral part of economic policy, are determined by the Federal Assembly of Yugoslavia.