Study regarding the influence of the endogenous and exogenous factors on credit institution’s return on assets

Maria-Daciana RODEAN (cozma) and Nicolae Balteş
Additional contact information
Maria-Daciana RODEAN (cozma): “Lucian Blaga” University, Sibiu, Romania
Nicolae Balteş: “Lucian Blaga” University, Sibiu, Romania

Theoretical and Applied Economics, 2016, vol. XXIII, issue 1(606), Spring, 247-254

Abstract: The goal of each credit institution is represented by profitability, an objective hardly to be achieved, taking into account that banks are practicing their usual activities within a banking system that hardly tries to recover. The main purpose of this research is to identify the existence of a dependency relationship between return on assets and endogenous factors (growth rate of the loan portfolios; the rate of growth of the provisions and solvency ratio) and the exogenous ones (GDP and inflation rate). The analysis done over the horizon of the last 10 years, a period that includes both economic boom, recession and recovery, illustrated the vulnerability of the credit institution in front of the business environment. The study demonstrated a significant dependence relationship, between return on assets recorded by Carpatica Commercial Bank and the intern determinants, while the variation of the exogenous factors does not explain the variation of ROA recorded by the bank.

Keywords: ROA; endogenous and exogenous factors; profitability; write-off processes; regression equation. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://store.ectap.ro/articole/1175.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1175&rid=122 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxiii:y:2016:i:1(606):p:247-254

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().