IDEAS home Printed from https://ideas.repec.org/a/brc/brccej/v5y2020i1p29-37.html

The Analysis Of Bank Performance Indicators

Author

Listed:
  • Klejda GABESHI

    (Doctoral School of Economic Studies, University of Craiova, Romania; Ass/Lecturer, Logos University, Faculty of Economics, Department of Finance and Accounting, Tirana, Albania)

Abstract

Banking performance is a reflection of how banks work, taking into account the environment in which they operate. The purpose of this article is to carry out a qualitative analysis of banking performance indicators, focusing on studying the efficiency of banking activity and banking productivity as determinants of performance. In order to understand the need and importance of evaluating the performance of the banking sector, firstly is elucidated the position of the sector in the structure of the financial system and the role it plays in its stability and economic development. The most important part of the paper emphasizes the identification of the factors that affect the efficiency and bank productivity. To determine the performance of the banking sector, micro and macroeconomic factors must be examined. Among the "micro" environmental factors in the analysis are considered the bank specific factors. As factors of the "macro" environment are all those factors that are not dependent on or determined by the bank's directors. "Efficiency" is different from "productivity", but it is related to it, and the two indicators together are essential for assessing the state of an economy in order to take appropriate measures to improve the situation and project future goals.

Suggested Citation

  • Klejda GABESHI, 2020. "The Analysis Of Bank Performance Indicators," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 5(1), pages 29-37.
    • Handle: RePEc:brc:brccej:v:5:y:2020:i:1:p:29-37
    as

    Download full text from publisher

    File URL: http://www.revec.ro/papers/200104.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    2. Molyneux, Philip & Thornton, John, 1992. "Determinants of European bank profitability: A note," Journal of Banking & Finance, Elsevier, vol. 16(6), pages 1173-1178, December.
    3. Anca MUNTEANU & Petre BREZEANU & Leonardo BADEA, 2013. "Productivity change patterns in the Romanian banking system – the impact of size and ownership on total factor productivity," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(6(583)), pages 35-52, June.
    4. Cristi SPULBAR & Mihai NITOI & Lucian ANGHEL, 2015. "Efficiency In Cooperative Banks And Savings Banks : A Stochastic Frontier Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 5-21, March.
    5. repec:agr:journl:v:6(583):y:2013:i:6(583):p:35-52 is not listed on IDEAS
    6. Chortareas, Georgios E. & Girardone, Claudia & Ventouri, Alexia, 2012. "Bank supervision, regulation, and efficiency: Evidence from the European Union," Journal of Financial Stability, Elsevier, vol. 8(4), pages 292-302.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christopoulos, Apostolos G. & Dokas, Ioannis G. & Katsimardou, Sofia & Spyromitros, Eleftherios, 2020. "Assessing banking sectors’ efficiency of financially troubled Eurozone countries," Research in International Business and Finance, Elsevier, vol. 52(C).
    2. Asteriou, Dimitrios & Pilbeam, Keith & Tomuleasa, Iuliana, 2021. "The impact of corruption, economic freedom, regulation and transparency on bank profitability and bank stability: Evidence from the Eurozone area," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 150-177.
    3. Anyars Mahmud, 2022. "Impact of Bank Regulations on Banks' Profitability: Cross-Country Evidence," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 8(2), pages 217-232.
    4. Gangopadhyay, Partha & Jain, Siddharth & Bakry, Walid, 2022. "In search of a rational foundation for the massive IT boom in the Australian banking industry: Can the IT boom really drive relationship banking?," International Review of Financial Analysis, Elsevier, vol. 82(C).
    5. Nicolae BALTEȘ & Alexandra-Gabriela-Maria DRAGOE & Sebastian-Ilie DRAGOE, 2016. "The evaluation of the companies financial performance through the rates of return," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(Special(I), pages 84-95.
    6. Chau H. A. Le, 2016. "Macro-financial linkages and bank behaviour: evidence from the second-round effects of the global financial crisis on East Asia," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 365-387, December.
    7. Mohsen Afsharian & Anna Kryvko & Peter Reichling, 2011. "Efficiency and Its Impact on the Performance of European Commercial Banks," FEMM Working Papers 110018, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    8. Simone Rossi & Mariarosa Borroni & Andrea Lippi & Mariacristina Piva, 2018. "Determinants of Bank Profitability in the Euro Area: What Has Changed During the Recent Financial Crisis?," International Business Research, Canadian Center of Science and Education, vol. 11(5), pages 18-27, May.
    9. Brijesh K Mishra & L. V. Ramana, 2018. "Does Ownership Structure Influence Bank Performance?: Evidence from an Emerging Economy," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(2_suppl), pages 282-297, August.
    10. Martins, António Miguel & Serra, Ana Paula & Stevenson, Simon, 2019. "Determinants of real estate bank profitability," Research in International Business and Finance, Elsevier, vol. 49(C), pages 282-300.
    11. Peterson K. Ozili, 2017. "Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa," Journal of African Business, Taylor & Francis Journals, vol. 18(2), pages 143-168, April.
    12. Esteban Miguélez & Jonathan Spiteri & Simon Grima, 2019. "Establishing the Contributing Factors to the Resurrection of PIIGS Banks Following the Crisis: A Panel Data Analysis," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 3-34.
    13. Omar Masood & Priya Darshini Pun Thapa & Olivier Levyne & Frederic Teulon & Rabeb Triki, 2014. "Does Co-integration and Causal Relationship Exist between the Non- stationary Variables for Chinese Bank’s Profitability? An Empirical Evidence," Working Papers 2014-249, Department of Research, Ipag Business School.
    14. Costin A. ISTRATE, 2016. "Transfer pricing in the insurance market," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(Special(I), pages 35-46.
    15. Yanikkaya, Halit & Gumus, Nihat & Pabuccu, Yasar Ugur, 2018. "How profitability differs between conventional and Islamic banks: A dynamic panel data approach," Pacific-Basin Finance Journal, Elsevier, vol. 48(C), pages 99-111.
    16. Pankaj Sinha & Sakshi Sharma, 2016. "Determinants of bank profits and its persistence in Indian Banks: a study in a dynamic panel data framework," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 7(1), pages 35-46, March.
    17. Robin, Iftekhar & Salim, Ruhul & Bloch, Harry, 2018. "Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 43-54.
    18. Eliona Gremi, 2013. "Internal Factors Affecting Albanian Banking Profitability," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 2, October.
    19. Hasan AYAYDIN & brahim KARAASLAN, 2014. "Stock Market Development, Bank Concentration, Ownership Structure, and Bank Performance: Evidence from Turkey," Journal of Economics and Political Economy, EconSciences Journals, vol. 1(1), pages 49-67, September.
    20. Molyneux, Philip & Reghezza, Alessio & Xie, Ru, 2019. "Bank margins and profits in a world of negative rates," Journal of Banking & Finance, Elsevier, vol. 107(C), pages 1-1.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:brc:brccej:v:5:y:2020:i:1:p:29-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cristina GANESCU (email available below). General contact details of provider: http://www.univcb.ro/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.