DETERMINANTS OF BANK PROFITABILITY IN CROATIA
The research objective of this study is twofold. It aims to provide a synthesis of relevant empirical researches on the determinants of commercial banks’ profitability and to establish empirical verification of profitability determinants of banks in the Republic of Croatia using an econometric metho...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Croatian Operational Research Society
2011-02-01
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| Series: | Croatian Operational Research Review |
| Subjects: | |
| Online Access: | http://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=142217 |
| Summary: | The research objective of this study is twofold. It aims to provide a synthesis of relevant empirical researches on the determinants of commercial banks’ profitability and to establish empirical verification of profitability determinants of banks in the Republic of Croatia using an econometric method of dynamic panel analysis. The empirical analysis is carried out on a data sample of 28 commercial banks in the period 2003-2008 which continuously refers to more than 95 % of assets of the overall banking intermediation. Return on assets (ROA) is profitability indicator used in the analysis. The presented research results and their economic interpretation may serve as a valuable foundation for the general assessment of commercial bank management in Croatia as well as for identifying several sources of potential improvement and impairment of their financial performance in the future. Thus, corrective actions could be planned and implemented in advance. |
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| ISSN: | 1848-0225 1848-9931 |