Profitability Parameters in the Banking System of Macedonia (FYROM)

Davcev, Ljupco and Hourvouliades, Nikolas (2009) Profitability Parameters in the Banking System of Macedonia (FYROM). Proceedings:International Conference on Applied Economics 2009. pp. 133-141. ISSN 1791 – 9347

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Abstract

This paper examines the banking industry in FYROM, a non-EU transition economy in the Balkans. The size of the domestic market is relevant small but is on a long-way to development and liberalization in the recent years. Our analysis evaluates the basic financial characteristics of the major banks and links bank profitability with various independent industry specific variables. We apply linear regressions to estimate possible relationships of the return on assets and return on equity ratios with the rest parameters. Our findings show significance of equity size, loan loss and operating expenses depending on the situation, but show no relationship of bank size, loans to assets and inflation on bank profitability. We question the significance of the proxies used when applied in such a small market.

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Economics
Depositing User: Ljupco Davcev
Date Deposited: 30 Nov 2012 14:06
Last Modified: 30 Nov 2012 14:06
URI: https://eprints.ugd.edu.mk/id/eprint/2560

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