ANALYSIS OF BANKING BUSINESS AND ITS IMPACT ON FINANCIAL STABILITY OF ECONOMIES IN EURO AREA The main objective of this article is to investigate banking business and analyze factors affecting financial stability of economies and changes in these factors over time using regression model with selected statistical indicators in macroeconomic environment with a focus on Slovakia as member of the Euro area. The method of empirical sector and trend analysis, regression analysis and economic modelling are used. The relationships between the dependence of the banking business profitability and macroeconomic growth have been surveyed and quantified using regression model spanning a period of ten years (2001-2010). Multiple regression model (Mod1) accurately reflected the real development of the banking business sector in Slovakia. Since these sector variables are not dependent on the Slovak historical context, the model can be readily applied to other central European economies to improve the profitability and stability of financial enterprises against crises. There are found selected market factors affecting banking business that informed the analysis, such as effective liquidity management, quality of balance sheets assets, efficient management of interest policy, and increasing of profitability rate from long-term aspect

Kise¾áková, Dana; Kise¾ák, Alexander

ANALYSIS OF BANKING BUSINESS AND ITS IMPACT ON FINANCIAL STABILITY OF ECONOMIES IN EURO AREA The main objective of this article is to investigate banking business and analyze factors affecting financial stability of economies and changes in these factors over time using regression model with selected statistical indicators in macroeconomic environment with a focus on Slovakia as member of the Euro area. The method of empirical sector and trend analysis, regression analysis and economic modelling are used. The relationships between the dependence of the banking business profitability and macroeconomic growth have been surveyed and quantified using regression model spanning a period of ten years (2001-2010). Multiple regression model (Mod1) accurately reflected the real development of the banking business sector in Slovakia. Since these sector variables are not dependent on the Slovak historical context, the model can be readily applied to other central European economies to improve the profitability and stability of financial enterprises against crises. There are found selected market factors affecting banking business that informed the analysis, such as effective liquidity management, quality of balance sheets assets, efficient management of interest policy, and increasing of profitability rate from long-term aspect

Dana Kise¾áková () and Alexander Kise¾ák
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Dana Kise¾áková: University of Prešov in Prešov, Faculty of Management, Slovakia
Alexander Kise¾ák: University of Prešov in Prešov, Faculty of Management, Slovakia

Polish Journal of Management Studies, 2013, vol. 8, issue 1, 121-131

Keywords: banking business; macroeconomic environment; regression model; financial stability (search for similar items in EconPapers)
Date: 2013
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