Study regarding the influence of the endogenous and exogenous factors on credit institution’s return on assets
The goal of each credit institution is represented by profitability, an objective hardly to be achieved, taking into account that banks are practicing their usual activities within a banking system that hardly tries to recover. The main purpose of this research is to identify the existence of a depe...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2016-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1175.pdf
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| Summary: | The goal of each credit institution is represented by profitability, an objective
hardly to be achieved, taking into account that banks are practicing their usual activities
within a banking system that hardly tries to recover. The main purpose of this research is to
identify the existence of a dependency relationship between return on assets and
endogenous factors (growth rate of the loan portfolios; the rate of growth of the provisions
and solvency ratio) and the exogenous ones (GDP and inflation rate). The analysis done
over the horizon of the last 10 years, a period that includes both economic boom, recession
and recovery, illustrated the vulnerability of the credit institution in front of the business
environment. The study demonstrated a significant dependence relationship, between return
on assets recorded by Carpatica Commercial Bank and the intern determinants, while the
variation of the exogenous factors does not explain the variation of ROA recorded by the
bank. |
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| ISSN: | 1841-8678 1844-0029 |