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Analysis Of Non-Performing Loans Movement And Profitability Of The Banking Market In BH

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  • Alihodžić Almir

    (University of Zenica, Faculty of Economics, Zenica, BH)

Abstract

The main motive of business operations of any bank is to achieve the highest profit possible and utilise it to increase dividends to shareholders, as well as to create conditions to increase their financial and credit potential by reinvesting in shares. The most important quality indicator of a loan portfolio is the share of non-performing loans to total operating assets and liabilities. In the first quarter of 2013, a trend of increasing non-performing loans in the legal entities sector increased by 2.6%, while there was stagnation with the population, i.e. slight decrease. The main objective of this paper is to examine the impact of the global financial crisis on the movement tendency of non-performing loans in the banking market in B&H, and their interdependence with the movement of profitability indicators by a simple regression equation.

Suggested Citation

  • Alihodžić Almir, 2014. "Analysis Of Non-Performing Loans Movement And Profitability Of The Banking Market In BH," Economic Themes, Sciendo, vol. 52(3), pages 332-350, September.
  • Handle: RePEc:vrs:ecothe:v:52:y:2014:i:3:p:332-350:n:6
    DOI: 10.1515/ethemes-2014-0021
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    References listed on IDEAS

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    1. Oecd, 2012. "Bosnia and Herzegovina Assessment Report 2012," SIGMA Country Assessment Reports 2012/6, OECD Publishing.
    2. World Bank, 2012. "Social Exclusion in Bosnia and Herzegovina and the Global Crisis," World Bank Publications - Reports 13237, The World Bank Group.
    3. World Bank, 2012. "Bosnia and Herzegovina," World Bank Publications - Reports 25893, The World Bank Group.
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