Transformation of investment funds in the Republic of Srpska

In the process of transformation of the socialist system, the need was imposed for the development of a market way of doing business following the example of the economies of market developed countries. In this context, the Republic of Srpska is pursuing an economic transition to enable the establishment of a marketorganized economy. Privatization of state capital in companies is an indispensable precondition for the implementation of this goal. This would enable the establishment of a market economy and an open and liquid capital market. To achieve this, the key task is to establish an efficient financial system that is the most important part of the overall economic system. This imposes the need for the presence of well-trained financial institutions to operate in the newly emerging market conditions. Therefore, in the Republic of Srpska, attention is paid to the transformation of already existing financial institutions and the formation and transformation of new ones, such as investment funds. The formation and transformation of investment funds is of great importance in supporting the market economy. Consequently, the research in this article is focused on the chronological presentation of the transformation of investment funds in the Republic of Srpska and their operations in order to see to what extent they have influenced or not the development of corporate management and capital markets.