Comprehensive analyze of the internal determinants in banking operations
Comprehensive analyze of the internal determinants in banking operations

Summary/Abstract: Comprehensive review of the existing literature in this study regarding identifying and analyzing the key findings in internal determinants influencing bank operations represents solid base for bank managers and executives in analyzing bank operation and undertaking necessary measures for improving the performances. Such approach should not neglect external determinants which also have influence in bank operation and should be taken into consideration, particularly when it comes to the cross section analysis of the bank operation or panel analysis for longer period.The focus of this particular study is comprehensive analyze and identification of the internal determinants of bank operation, aiming to generate set of determinants which might influence the bank operation. The study identified 17 internal determinants influencing bank operation which was undertaken in empirical analysis by two approaches: exploring determinates in the individual countries’ banking systems and exploring cross-country determinants.The findings indicated that majority of identified 17 internal bank variables have various behavior in the real bank operations. In some cases the influence is positive, negative or insignificant on the final bank operation. However, most of the internal determinants experience mixed results, demonstrating that influence on the each determinant on the bank performances depends on the set of circumstances and hence it require further empirical analysis in order to identify the positive/negative/or insignificance of the internal determinants.Exploring and analyzing internal determinants in bank operations should increase the awareness of the banking executives on the major factors influencing banking operation. Moreover, it can be utilized as guide for bank management when exploring the reasons for successful /unsuccessful bank operation. Such approach has been particularly advisable for developed as well as transitional countries, including Republic of Macedonia. Further supplementary research in this area can be focused on the external determinants of bank operation. Hence, similar comprehensive analyze should identify all possible external and macroeconomic determinants which might influence bank operations. Furthermore, empirical analysis should establish if certain external determinants have positive/negative significant or insignificant influence on the bank performances.

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