CONTEMPORARY APPROACHES IN THE ANALYSIS OF ECONOMIC PERFORMANCES
DOES LIQUIDITY AND BANK CAPITAL AFFECT COMMERCIAL BANKS PROFITABILITY? EVIDENCE FROM COUNTRIES OF SOUTHEAST EUROPE
Vesna Georgieva Svrtinov, Olivera Gjorgieva Trajkovska, Blagica Koleva
Abstract: Commercial banks are profit seeking organizations, but at the same time, they take care of their liquidity and safety, due to the reason to satisfy the withdrawal needs of its customers. Taking this into the account commercial banks always face the issue of trade off between liquidity, safety, and profitability and they try to find a balance between them as they contradict each other. The paper analyses the relationship between profitability on one side and liquidity and bank capital on the other site in the commercial banks in several countries of Southeastern Europe. Apart from the relationship between the variables of interest, we determine the strength and direction of that relation.
Keywords: Southeast Europe, commercial banks, profitability, liquidity, bank capital
Published: p. 243-250
PDF
