ISTRAŽIVANJE DETERMINANTI PROFITABILNOSTI BANAKA U REPUBLICI HRVATSKOJ PUTEM PANEL ANALIZE
A RESEARCH OF BANKS’ PROFITABILITY DETERMINANTS IN THE REPUBLIC OF CROATIA USING PANEL ANALYSIS

Summary/Abstract: The aim of this paper is to analyze mutual correlation between specific ratios which determinate success of bank business. As determinants of banks profitability we imply: bank capital, size of bank, net interest revenue, net revenue from commissions and fees, operating expenses and bank risk. In first part of the paper descriptive statistics for all determinants of bank profitability is presented, and in the second part panel analysis of bank profitability based on selected pattern of 18 largest banks in Republic of Croatia is shown. The results of the research imply that size of the bank does not necessary influence bank profitability, and that more profitable banks are those with larger market share, higher capitalization and better operating expenses management. The results of the research also indicate that net interest revenue still highly influences banks net revenues.

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