EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA
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 (...
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| Format: | Article |
| Language: | English |
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Institute for Research and European Studies
2023-12-01
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| Series: | Journal of Liberty and International Affairs |
| Subjects: | |
| Online Access: | https://www.e-jlia.com/index.php/jlia/article/view/1195 |
| _version_ | 1797371564147081216 |
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| author | Erëza A. Arifi |
| author_facet | Erëza A. Arifi |
| author_sort | Erëza A. Arifi |
| collection | DOAJ |
| description |
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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| first_indexed | 2024-03-08T18:21:42Z |
| format | Article |
| id | doaj.art-7433f71c9c49459a8d44d6c15386504e |
| institution | Directory Open Access Journal |
| issn | 1857-9760 |
| language | English |
| last_indexed | 2024-03-08T18:21:42Z |
| publishDate | 2023-12-01 |
| publisher | Institute for Research and European Studies |
| record_format | Article |
| series | Journal of Liberty and International Affairs |
| spelling | doaj.art-7433f71c9c49459a8d44d6c15386504e2023-12-30T19:15:43ZengInstitute for Research and European StudiesJournal of Liberty and International Affairs1857-97602023-12-019310.47305/JLIA2393136aEFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIAErëza A. Arifi0College for International Management - Prishtina, Kosovo 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. https://www.e-jlia.com/index.php/jlia/article/view/1195Profitability ProxiesAutomated Teller MachineInflationGross Domestic ProductGeneralized Method of Moments |
| spellingShingle | Erëza A. Arifi EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA Journal of Liberty and International Affairs Profitability Proxies Automated Teller Machine Inflation Gross Domestic Product Generalized Method of Moments |
| title | EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA |
| title_full | EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA |
| title_fullStr | EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA |
| title_full_unstemmed | EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA |
| title_short | EFFECT OF AUTOMATED TELLER MACHINES AND BANK BRANCHES ON THE PROFITABILITY OF BANKING BUSINESSES: EVIDENCE FROM KOSOVO AND NORTH MACEDONIA |
| title_sort | effect of automated teller machines and bank branches on the profitability of banking businesses evidence from kosovo and north macedonia |
| topic | Profitability Proxies Automated Teller Machine Inflation Gross Domestic Product Generalized Method of Moments |
| url | https://www.e-jlia.com/index.php/jlia/article/view/1195 |
| work_keys_str_mv | AT erezaaarifi effectofautomatedtellermachinesandbankbranchesontheprofitabilityofbankingbusinessesevidencefromkosovoandnorthmacedonia |