IDEAS home Printed from https://ideas.repec.org/h/spr/eurchp/978-3-030-35051-2_19.html
   My bibliography  Save this book chapter

Bank Reliability Assessment Model: Case of Latvia

In: Eurasian Business Perspectives

Author

Listed:
  • Irina Solovjova

    (University of Latvia)

  • Inna Romānova

    (University of Latvia)

Abstract

Reliable and stable banks are an important precondition for the sustainable development of national economy. The objective of the chapter is to design a model allowing assessment of bank reliability in the context of bank financial strength. The model is designed using publicly available financial statement data of Latvian commercial banks, in the period of 2003–2016, macroeconomic data as well as aggregate statistical data of Latvian banking sector. The model allows calculation of ratings reflecting reliability level of banks. The model is designed based on the multiple choice model ordered logit. The chapter identifies the most important factors reflecting reliability level of banks, including shareholder equity ratio, profitability, assets structure, loan portfolio structure, and others. The assessment of bank reliability shows that the global financial crisis had a negative impact on Latvian commercial banks, revealing imbalances in bank operations and performance, causing decrease of profitability and deterioration of bank loan portfolios.

Suggested Citation

  • Irina Solovjova & Inna Romānova, 2020. "Bank Reliability Assessment Model: Case of Latvia," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Meltem Ş. Ucal (ed.), Eurasian Business Perspectives, pages 285-298, Springer.
    • Handle: RePEc:spr:eurchp:978-3-030-35051-2_19
    DOI: 10.1007/978-3-030-35051-2_19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:eurchp:978-3-030-35051-2_19. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.