The Impact of Specific Banking, Industrial and Macroeconomic Factors on Bank Profitability: Evidence from the Albanian Banking System

Gazmend Nure

Business and Economic Research, 2019, vol. 9, issue 2, 182-198

Abstract: This research studies the factors that affect the profitability of the banking system in Albania during the period 2012-2017.The specific factors taken in the study are divided into two groups: the specific banking factors (internal), and the macroeconomic factors. The dependent variable used in the study, to measure Bank Profits, is Return on Equity (ROE). The empirical findings show that, when ROE is used as a dependent variable, all bank specific variables are negatively and significantly related to profitability. That being said, there is the exception of the liquidity factor (Liquid assets over short term liabilities) and bank size which has a positive.

Keywords: Commercial banks; Profitability; Determinants; Return on assets; Liquidity ratio (search for similar items in EconPapers)
JEL-codes: G21 G24 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:mth:ber888:v:9:y:2019:i:2:p:182-198

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