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Comparative Analysis of Banking System Profitability in Western Balkan Countries

Journal of Economics and Management Sciences

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Title Comparative Analysis of Banking System Profitability in Western Balkan Countries
 
Creator Tmava, Qazim
Berisha, Fahredin
Mehmeti, Milaim
 
Description The aim of this paper is to analyze the profitability of the banking sector in the Western Balkan countries. (Note 1) This paper reviews return on assets (ROA) as an indicator of profit and return on equity (ROE) as an indicator of profitability in the banking systems of the respective countries, as well as some other macroeconomic variables that influence them. The main objective of this study is to identify the specific and macroeconomic variables of this industry, that have an impact on the profitability of commercial banks operating in the Western Balkan countries during the 2008-2015 period. Specifically, this paper addresses external indicators (gross domestic product, remittances, foreign direct investment, unemployment), and industry and bank specific indicators (assets, loans, loan-to-deposit ratio, non performing loans and interest rates) that affect the profitability of the banking system in respective countries.
Therefore, according to the data generated during the research and the literature review, the profitability of banks measured by the ROA and ROE indicators, regarding the analyzed countries, turns out to be extremely low, especially compared to EU countries where they strive.
 
Publisher IDEAS SPREAD INC
 
Date 2019-06-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://j.ideasspread.org/index.php/jems/article/view/290
10.30560/jems.v2n2p33
 
Source Journal of Economics and Management Sciences; Vol 2 No 2 (2019); p33
2576-3016
2576-3008
 
Language eng
 
Relation https://j.ideasspread.org/index.php/jems/article/view/290/218
 
Rights Copyright (c) 2019 Qazim Tmava, Fahredin Berisha, Milaim Mehmeti
http://creativecommons.org/licenses/by/4.0