CREDIT RISK AND PROFITABILITY IN BANKING SECTOR IN BOSNIA AND HERZEGOVINA
Igor Živko, Josipa Grbavac, Anela Čolak
Pages: 376-384
Published: 12 Sep 2018
Views: 1,208
Downloads: 184
Abstract: Financial system of Bosnia and Herzegovina is bank-based system. There are twenty-eight banks in banking sector. Loans dominate in bank's assets and there is source for bank profitability. Authors in this paper will analyse credit risk expose of banks measured with non-performing loans ratio (NPL) in period 2005-2016. Changes in economic environment have impact on banks’ credit risk. First aim of this paper is to test correlation between changes in economic present measured by indicators (GDP, inflation, and monetary aggregates) and non-performing loans. Second aim, is to test correlation between non-performing loans and profitability in banking sector.
Keywords: bank, gdp, npl, profitability, bosnia and herzegovina
Cite this article: Igor Živko, Josipa Grbavac, Anela Čolak. CREDIT RISK AND PROFITABILITY IN BANKING SECTOR IN BOSNIA AND HERZEGOVINA. Journal of International Scientific Publications: Economy & Business 12, 376-384 (2018). https://www.scientific-publications.net/en/article/1001749/
© 2023 The Author(s). This is an open access article distributed under the terms of the
Creative Commons Attribution License http://creativecommons.org/licenses/by/3.0/, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. This permission does not cover any third party copyrighted material which may appear in the work requested.
