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The Analysis Of Bank Performance Indicators

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  • 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
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    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. 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.
    3. repec:agr:journl:v:6(583):y:2013:i:6(583):p:35-52 is not listed on IDEAS
    4. Molyneux, Philip & Thornton, John, 1992. "Determinants of European bank profitability: A note," Journal of Banking & Finance, Elsevier, vol. 16(6), pages 1173-1178, December.
    5. 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.
    6. 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 - AGER, vol. 0(6(583)), pages 35-52, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking Performance; Banking Sector; Efficiency; Productivity;
    All these keywords.

    JEL classification:

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

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