The aim of this paper is to explain management information system and its relationship with operational risk and level of economic capital. Today, use of the information technology represents one of the most important ways to achieve organizational success. Effective use of the information technology would lead to the improvement in operational efficiency and greater business management. It would be explained through the application of management information system in banking sector. We will discuss the use as well as the risk that bank is exposed to by using these operations. Information systems have very significant role in banks. Application of information technology affects efficiency of banking operations. With the expansion of e-banking and other electronic banking products and service, banks become more exposed to risk in their daily operations, with the increase possibility of operational risk and different forms of frauds. This is descriptive and theoretical research, mostly based on literature review and findings from different sources. The aim of study is to clarify concept of Management Information Systems (MIS) and show influence of MIS in banking. It plays an important role in decision making process, mostly about protection against potential losses and serves as good management tool. This paper contributes to theoretical literature about Management Information Systems in banking, operational risk, and explanation of Basel Standards and better understanding of Concept of Economic Capital. Economic capital represents amount that serves as coverage for operational risk, with the aim to protect bank from unexpected operational losses. Keywords: Management Information System, Banking, Operational Risk, Basel Accords, Economic Capital.

The aim of this study is to clarify the concept of the price discrimination and to show how this concept is used in banking business on the example of the UniCredit Bank dd Mostar. Price discrimination refers to any no uniform pricing policy used by a firm with market power to maximize its profit. Price Discrimination leads to change in both, quantity and price. So it is also called no uniform pricing, charging customers different prices for the same product or charging the single customer a price that varies depending how many units the customer buys. There are 3 degrees of Price Discrimination. : 1st degree is different prices for both consumers and units, 2nd degree is different prices for different units and 3rd degree is different prices to different consumers. UniCredit Bank d.d. was the first bank in Bosnia and Herzegovina that introduced a new, unique approach to client service model. The basic characteristic of the whole business of the Bank was actually based on the segmentation of clients (existing and new-potential) with complex business lines. The business lines included meeting the needs of clients and facing in accordance with their capabilities and needs. Characteristics of the business model UniCredit Bank dd was the segmental approach to the client, so that the clusters of customers would fit similar characteristics, preferences and market position, and assign them a special service model defined by each business line. JES! Package account is present on the market since 2006 in the form of 4 different models adapted to the needs of the client and used by more than 50,000 customers. JES! account package is available in several different models - Optimum, Expert, Student and Senior. Account package is also practical, useful, stylish and affordable. Keywords: Price Discrimination, Different Customers, Profit, UniCredit Bank, Banking Products, client service model.

This study will provide the explanation of the vertical integration, benefits and show the application of the vertical integration in the real business on the example of the Croatian company Agrokor. There are always important transactions between a multinational`s operations in different countries. The output of one subsidiary is often an input into the production of another. Or technology developed in one country may be used in others. Or management may usefully coordinate the activities of plants in several countries. Multinationals exist because it turns out to be more profitable to carry out these transactions within a firm rather than between firms. This means that multinationals engaged in internalization. If you want something done right, do it yourself. Many transactions are more profitably conducted within a firm rather than between firms. Also many activities in different countries may be usefully integrated in a single firm. One of example of vertical integrated firm in Balkan is Agrokor, Croatian company. In 1989 the joint-stock company Agrokor was registered. The Agrokor Group is the largest private company in Croatia and one of the leading regional companies Apart from the Croatian companies, the Agrokor Group today also comprises companies from all over the region acquired during the last few years: Ledo Citluk, Sarajevski kiseljak, Velpro Sarajevo, Frikom, Dijamant, Idea, Ledo Hungary and Fonyodi. From this example it is seen that vertical integrated firms benefits to all participants in the process of production and performing business. Keywords: Vertical Integration, Multinational Company, Production, Subsidiary, Profitability.

The objective of this study is to compare the financial performance of the banking sector in some ex- Yu countries: Bosnia and Herzegovina, Croatia, Slovenia and Serbia for period from 2005 to 2010. Banking sector of Yugoslavia was strong but because of the weakness and the collapse all these characteristics disappeared. The financial performance of banks is study on the basis of some selected financial variables and ratios, such as return on asset, return on equity, capital adequacy ratio, share of non-performing loans in total loans, participation of deposits, assets and loans in Gross Domestic Product of the country. All of the indicators improved in period until the beginning of the global crisis, but with the first signs of crisis the conditions in entire economy worsen as well as the situation in the banking sector. Data show that banking system of these countries suffers from problems largely influenced by its huge debt to IMF, political situation, financial crisis, internal situation and other political factors. The authorities of banking system in selected countries took some measures in order to improve financial position and to slowdown the negative consequences of the global crisis. Keywords: Banks, ROA, ROE, Non-performing loans, Reforms, Crisis