Earthquake Risk and Insurance in the Banking System

Although sophisticated instruments for measuring the magnitude of earthquakes and their effects exist today, there are still no devices capable of accurately predicting the place and time of an earthquake. It is well known that, among all natural disasters, earthquakes tend to be the most destructive, deadliest, and cause the greatest material damage. Modern society depends on numerous infrastructures without which everyday functioning would be impossible. Developed countries have defined their critical infrastructure sectors, among which the banking sector is included. There is no doubt that the functioning of society is impossible without the continuity of banking operations in the event of an earthquake. Issues related to risk and insurance, as well as the analysis of the vulnerability of the banking sector of the Republic of Serbia in the event of an earthquake, are examined in this paper.