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Analysis Of Factors Affecting The Performance Of Banking Systems In Post-Communist Eu States

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  • Alina Maria Benghea, Iulia Cristina Iuga

    (1 Decembrie 1918 University from Alba Iulia, Romania)

Abstract

This study investigates the impact of specific banking factors and macroeconomic factors on banking performance indicators (ROA and ROE) in post-communist EU member states for the period 2000 – 2020. To determine the significant impact, an econometric panel data regression model was used. The study's results indicate that specific banking factors (Bank Size and Overhead Cost) have a negative impact on profitability indicators ROA and ROE, while other specific banking factors (Net Interest Margin and Non-Interest Banking Income) have a positive impact on the dependent variables. There is a positive impact of macroeconomic indicators on profitability indicators ROA and ROE, except for inflation, which has a negative impact on both ROA and ROE.

Suggested Citation

  • Alina Maria Benghea, Iulia Cristina Iuga, 2024. "Analysis Of Factors Affecting The Performance Of Banking Systems In Post-Communist Eu States," European Journal of Public Administration Research, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0, pages 55-68, June.
    • Handle: RePEc:aic:ejpair:y:2024:v:06:p:55-68
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    References listed on IDEAS

    as
    1. Barry Williams & Laurie Prather, 2010. "Bank risk and return: the impact of bank non‐interest income," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 6(3), pages 220-244, June.
    2. Barry Williams & Laurie Prather, 2010. "Bank risk and return: the impact of bank non‐interest income," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 6(3), pages 220-244, June.
    3. Demirguc, Asli & Huizinga, Harry, 1999. "Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence," The World Bank Economic Review, World Bank, vol. 13(2), pages 379-408, May.
    4. Barry Williams & Laurie Prather, 2010. "Bank risk and return: the impact of bank non‐interest income," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 6(3), pages 220-244, June.
    5. Aerdt Houben & Iskander Schrijvers & Tim Willems, 2008. "The Supervision of Banks in Europe: The Case for a Tailor-made Set-up," DNB Occasional Studies 604, Netherlands Central Bank, Research Department.
    6. Mukesh Kumar & Vincent Charles & Chandra Sekhar Mishra, 2016. "Evaluating the performance of indian banking sector using DEA during post-reform and global financial crisis," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(1), pages 156-172, February.
    7. Sarah Sanya & Simon Wolfe, 2011. "Can Banks in Emerging Economies Benefit from Revenue Diversification?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 79-101, October.
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