| Summary: | The core objective of this study is to explore whether the installation of automated teller machines (ATM) and commercial bank branches (CBB) affects the profitability of the banking systems in Kosovo and North Macedonia. Additionally, several influential variables, such as bank capital-to-assets (BCA), inflation (INF), and GDP growth (GDP_G), were used in the research. More specifically, the research deals with secondary data from 2010 to 2022 using the dynamic data analysis technique generalized method of moments (GMM). The evidence indicates that ATM adoption has a substantial positive influence on bank profitability. Similarly, BCA and GDP_G have a positive influence on bank profitability. Nevertheless, CBB and inflation have had a substantial negative influence on both metrics. The research’s scientific merit and novelty are derived from features unique to earlier studies. The study claims to open up new avenues of debate involving scholars and legislative authorities about identifying influencing components of profitability in the banking business.
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