Determinants of bank business success: A study of selected cases from former Yugoslav countries

Abstract

The paper examines the determinants of bank business success by applying panel analysis to a sample of former Yugoslavia countries. The study spans the 2010-2020 period. This paper's primary goal is to find the most important factor influencing bank business success in former Yugoslavia using the proper panel analysis econometric model. The analysis's findings suggest that non-performing loans are the microeconomic component that has the biggest influence on bank business performance and that macroeconomic factors do not have a statistically significant impact on bank business success.

Keywords

• bank business success
• business determinants
• macroeconomic factors
• microeconomic factors
• panel analysis
• fixed effects method
• random effects method